Administrative and Economic Challenges of the Liquidity Shortage in Libya: A Study of Bank Employees’ Behavior

Abstract

The liquidity shortage in Libya has emerged as a significant economic and administrative challenge, resulting in a persistent imbalance between the supply of and demand for cash. This situation can be attributed to a range of interconnected factors, including fluctuations in public revenues, excessive dependence on cash-based transactions, inadequate electronic payment infrastructure, and ongoing political and economic challenges that have constrained the effectiveness of monetary policies.

The consequences of the liquidity shortage extend beyond the financial sector to affect the behavioral and organizational dimensions of banking institutions. Bank employees are increasingly exposed to professional and psychological pressures as they interact with customers on a daily basis under conditions characterized by limited cash availability and constrained financial resources. These circumstances may influence employees’ attitudes, work performance, interactions with customers, and their ability to provide banking services efficiently.

In this context, organizational behavior among bank employees has become increasingly important, as it constitutes a key factor influencing the quality of banking services and the level of customer satisfaction. Understanding how liquidity shortages affect employees’ behavior and workplace performance is therefore essential for assessing the broader administrative and economic consequences of the liquidity crisis in Libya.

Accordingly, this study focuses on the behavioral and administrative implications of the liquidity shortage within Libyan banking institutions, with particular emphasis on the challenges faced by bank employees and their potential effects on service quality and customer satisfaction. The study seeks to contribute to a better understanding of the relationship between liquidity constraints and organizational behavior and to provide insights that may support the development of more effective administrative and banking practices in the Libyan context.