Financial Analysis of Financial Safety Indicators of Libyan Commercial Banks to Predict Banking defaultA Comparative Study between the National Commercial Bank and the Bank of Trade and DevelopmentDuring the Period (2017-2021)

Abstract

Commercial banks are pivotal institutions in the economy, and the study aimed to analyze financial soundness indicators to predict banking defaults in the National Commercial Bank and the Trade and Development Bank during the period (2019-2021) using the descriptive analytical approach. The results showed that the National Commercial Bank faces major challenges in financial performance, which increases the likelihood of its default if measures are not taken to improve operational efficiency and liquidity utilization. While the Trade and Development Bank enjoys relative stability and good risk management, it needs to improve liquidity utilization and develop lending policies to ensure sustainability. The study recommended that the National Commercial Bank address non-performing loans and diversify revenues, while the Trade and Development Bank is recommended to enhance resource utilization and expand investments.