Sources of finance and their role in economic development A field study on commercial banks

Abstract

The study dealt with sources of financing and their role in economic development - a field study on commercial banks. The problem of the study was mainly to determine the role of different financing formulas in achieving economic development in Libya. The problem can be summarized in the following question: To what extent does the Libyan banking sector contribute to financing economic development? The study aimed to identify the importance of the banking sector in Libya and the extent of its contribution to economic development. Identifying the most important factors affecting the volume of bank credit, and trying to identify the problems and challenges facing the banking sector in financing economic development. The study was based on hypotheses which are the credit policy on which the banking system depends leads to increased rates of economic development, and the lack of sufficient guarantees leads to refusal to grant credit facilities . The study results showed that economic development requires a group of sources to finance it, including bank financing, which is considered its most important element. Economic development aims to increase national income, raise the standard of living, reduce the disparity between income and wealth, and modify the relative composition of the national economy. The study recommended several recommendations, the most important of which are commercial banks must have a development strategy in order to support and develop the enterprise sector. In addition to qualifying current employees in banks, employing highly qualified employees in the fields of finance, communication, and media, and ensuring the preparation of training programs and organizing training courses.