The Impact of Financial Flexibility on Achieving Financial Stability: An Empirical Study on a Sample of Libyan Commercial Banks (2010-2020)
Authors
Ahlam Abdulsalam Salem Milad
Abstract
The study examined the impact of financial flexibility on achieving financial stability across a sample of nine Libyan commercial banks during the period (2010-2020) using financial indicators and the Altman Z-Score model to evaluate financial distress. Utilizing a descriptive-analytical approach, the findings revealed performance variations, with Sahara Bank recording the strongest financial stability, whereas the National Commercial Bank scored the lowest, indicating a higher probability of distress. The study recommended enhancing capital and liquidity management and periodically applying the Z-Score model.
Keywords
Financial Flexibility, Financial Stability, Libyan Commercial Banks, Altman Z-Score Model, Capital Adequacy Ratio, Liquidity Ratio, Financial Distress.
How to cite
Ahlam Abdulsalam Salem Milad (2023). The Impact of Financial Flexibility on Achieving Financial Stability: An Empirical Study on a Sample of Libyan Commercial Banks (2010-2020). Al-Afaq Scientific Journal, Volume 4, Issue 10.