Evaluating the Performance of Libyan Commercial Banks Using Basic Financial Ratios.

Abstract

This research aims to identify the performance of Libyan commercial banks using the basic financial ratios of: (liquidity ratios, "operational" management efficiency ratios, financing structure ratios, profitability ratios)  from 2009 to 2018, for five Libyan commercial banks: (Al Jumhouria Bank, Al Wahda Bank, Sahara Bank, Bank of Commerce and Development, and National Commercial Bank).To achieve this, the descriptive approach was based on with its documentary input to research sources in the field of financial ratios and quantitative input, using financial statements as a means of collecting financial data to calculate basic financial ratios, conduct horizontal analysis and conduct the strengths and weaknesses of the five largest Libyan commercial banks. The results of the financial analysis showed that the performance of Libyan commercial banks has high cash flow and does not have the efficiency and effectiveness in generating profits, banks have a good operational efficiency in investing their resources and have the ability to refund the money they get from depositors. The study recommended a set of recommendations, the most important of which is Central Bank has to urge the Libyan commercial banks to evaluate and follow up their performance on an ongoing basis.