The Impact Of Internal Banking Factors And Political Stability On The Profitability Of Libyan Commercial Banks
Keywords:
Profitability, Liquidity, Capital, Political stabilityAbstract
The profitability of commercial banks is one of the strategic objectives that enable them to confront the challenges they face and perform their role effectively in the economy. Despite efforts to improve the performance of Libyan commercial banks, there is fluctuation in their profits, which may hinder their functions. This paper aims to investigate the impact of liquidity, capital, and political stability on the profitability of Libyan commercial banks using data from three banks (Sahari Bank, National Commercial Bank, and Trade and Development Bank) for the period between 2007 and 2018. The results showed a positive impact of capital and political stability on profitability. On the other hand, liquidity (loan ratio) negatively affected the profitability.
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