The role of human resources empowerment in credit risk management efficiently

الملخص EN

The Libyan economy is under the influence of current political risks as well as bottlenecks and problems in all economic sectors operating in Libya, resulting in a sudden halt in petroleum products in the revolution period its followed by a further decline in oil exports and major economic activities.

All of these factors played a major role in the downturn in the Libyan economy because the Libyan economy is based on oil revenues, which account for more than 90% of its total revenues and negatively affected other sectors.

The banking sector was not immune to these current economic risks, and banks have also been affected by conflicts in banking policies, particularly concerning the cancellation of the interest rate and the withdrawal of money from the banking system.

Therefore, the banking sector faced non-financial and financial risks.

This study focuses on human resources with a high level of talent and skills and their role in strengthening and using their skills to overcome the banking risks faced by the banking sector.

This is of great importance as the first study addressing the strengthening of human resources in effective risk management in the banking sector, especially in Libya.

In this context, the impact of human resources empowerment on effective credit risk management has been demonstrated.

For the study, a questionnaire method was used to collect data from banks operating in the eastern part of Libya.

The survey was distributed to 320 employees and six banks were selected as targets to investigate the credit risks faced by the banking system as a result of the current political crisis.

As a result of the research, it was determined that there is a positive and statistically significant relationship between the dimensions of human resources strengthening and effective credit risk management.

In the study, it was seen that issues such as training, incentives, and participation, sharing of authority, teamwork for employees are important in risk management.

Besides, the risk management and strengthening of human resources among the banks in Benghazi and Al Bayeda have been found to differ in their dimensions.

The findings in this study seem to be consistent with many findings in the literature.