The Reality of Commercial Banks' Governance in Libya and its Reflections on the Efficiency of Liquidity Management: A Survey Study of the Employees' Opinions in Tarhuna Commercial Banks

Abstract

The present study aimed to investigate the reality of implementing corporate governance principles in Libyan commercial banks and to measure their impact on the efficiency of financial liquidity risk management,
with a specific focus on identifying perceptual gaps among banking staff regarding the effectiveness of these principles. To achieve this objective, the study adopted a descriptive-analytical approach, utilizing a questionnaire distributed to a sample of 70 employees across several commercial banks (Jumhouria Bank, National Commercial Bank, Al-Waha Bank, and Aman Bank). Data were statistically processed using descriptive statistics and One-Way Analysis of Variance (ANOVA). The findings revealed that the overall level of commitment to governance principles was rated as "Moderate," with a notable deficiency in banks' possession of proactive strategies to mitigate sudden liquidity crises. Furthermore, statistical results demonstrated significant differences in respondents' perceptions attributable to years of experience; where senior employees (15+ years) expressed more critical views of field practices. Additionally, a perceptual gap was identified concerning job positions between the leadership and executive levels. Based on these findings, the study recommended a transition from "Compliance Governance" to "Performance Governance," the activation of early warning units for financial risk forecasting, and the necessity of bridging the communication gap between administrative levels to ensure the sustainability and stability of financial liquidity levels.