Saleh Abida's presentation at SPARC (Salford Postgraduate Annual Research Conference), 10 - 11 June 2010 at the University of Salford.

1. The Efficiency of Libyan Commercial Banks in the Context of Libya’s World Trade Organisation Accession Paper Presented by Saleh .R. Abida at SPARC, 10-11 June 2010 © rests with the author. Please cite appropriately 1

3. WTO and Libyan Banking Sector

4. The Main Characteristics of the Libyan Banking Sector

5. The Reasons of Libya’s Joining the WTO?

6. Literature Review

7. Methodology of Study

8. Results

11. Libya has become an observer in the WTO since 2004 and will continue to be so during the negotiation leading to full membership.

12. According to WTO rules, Libya had to start accession negotiations within five years from this date. However, Libya has not submitted a memorandum on the foreign trade regime, therefore, the working party has not met yet.4

14. To get more predictable access for its exports to foreign markets and attract more foreign direct investment.

15. Keen on expanding the service sector and banking sector (suffering from Overstaffing problem and low productivity).5

17. All the financial activities in Libya are under the control of Central Bank of Libya (CBL).

18. It is described as backward sector and it exists in a relative capital-abundant economy, where the number of institutions is small by international standards and they have traditionally been over-protected by the government.

19. corruption and lack of transparency and accountability.

20. Highly concentrated sector.

21. heavy burden of non-performing loans (NPLs). It represented around 25% of total loans6

25. The main reasons for using this approach, rather than a parametric approach, is that it was originally developed to measure efficiency in the public sector rather than private sector also it is suitable for small samples and fewer assumptions.

26. Data used in this study are collected from balance sheets and income statements of banks, their web pages in the internet, annual central banks reports and also from the Bankscope database.

27. The interest and non interest expense were used as inputs and interest and net interest income were used as outputs.

28. How the efficiency of Libya and GCC countries compared?1- comparisons of bank efficiencies in different nations based on the use of a common efficient frontier (CEF), 2- comparisons of bank efficiencies in different nations using nation-specific frontiers (NSF).

30. Results 10

31. 11 Results

32. 12 Results