Measuring the quality of banking services in Libyan commercial banks from the customer's perspective using the ServQual model

Abstract

This study aimed to measure the quality of banking services provided by Libyan commercial banks from the customer's perspective, using the ServQual model. To achieve this, the researcher conducted a survey of a small sample of bank customers during July 2026 using an electronic questionnaire developed using Google Forms. The sample consisted of 68 respondents, one of whom was excluded. Using the PSPPIRE software, the reliability coefficient for the questionnaire was 91% (Cronbach's alpha). The researcher arrived at several conclusions, including that Libyan commercial banks are unable to provide customers with sufficient cash liquidity when needed, and that, in general, customers of the commercial banks under study are dissatisfied with the quality of banking services. The researcher presented a set of recommendations and proposals for Libyan commercial banks regarding the liquidity shortage problem. These included several options: emulating commercial banks in developed countries that have experienced similar economic and political circumstances to those currently facing Libya and leading to the same problem; encouraging business owners to deposit and invest their funds in commercial banks in a manner consistent with Islamic law, such as exempting them from banking service fees until the country stabilizes; urging the Central Bank and the Libyan government to collaborate on enacting a law prohibiting the hoarding of Libyan funds and setting a maximum limit on the amount of cash that can be kept in homes, shops, and companies; monitoring the black market and criminalizing the sale of foreign currency to unauthorized individuals, confiscating any Libyan funds found in the black market while guaranteeing their return after five years; criminalizing the practice of 'burning' salaries in the black market, confiscating the funds of violators, and guaranteeing their right to recover their capital after five years; encouraging customers to use electronic services instead of cash by making these transactions free; and lifting fuel subsidies in line with global prices and instructing gas station owners to deposit cash electronically. My daily work in commercial banks is to ensure the circulation and transfer of money, after providing an alternative support such as doubling the allowance for the wife and children.