Credit Analysis for Libyan Commercial Banks: A Case Study of Sahara Bank

Despite significant advances in many countries, as measured by the degree of commercial bank progress and development. This investigation and assessment of its credit activities became essential in order to ensure the quality and effectiveness of the organisation. Whereas, credit is one of the most critical tasks, ensuring the significance of assessment. The research aims to study and analyze credit banking which be applied at one of the commercial banks that operating in Libya (Sahara Bank). Commercial banks simply do not move away from their role as a financial mediator, allocating financial resources to fulfil diverse demands in order to make a profit. The main results of the study followed: a) the lower on the risk index of non-payment for loans and burdens and the lower of the safety margins to meet the risk of the loans. b) Despite the importance of measuring the cost of each activity separately to make sure of its efficiency and to keep track of any problems that may encounter this activity and affect its profit, but the accounting system that used does not provide data and information on the costs of each revenue activity. The Sahara Bank's most essential suggestions include evaluating risk lending in order to offer meaningful periodic information and effectively establishing an accounting system, as well as the necessity to scientifically and practically offer competent human cadres.