The Impact of Financial Inclusion on Operational Risk in Libyan Commercial Banks: A Field Study of Commercial Bank Branches in Al-Kufra City

Abstract

This study aimed to examine the impact of financial inclusion on operational risks in Libyan commercial banks by addressing its dimensions of access to financial services, use of financial services, and financial quality and capabilities. The study a descriptive-analytical approach and used a questionnaire as the instrument for data collection. The study population comprised 80 employees working at four commercial bank branches in Al-Kufra City, of which 66 valid questionnaires were included in the analysis. The findings revealed a positive and statistically significant impact of financial inclusion on operational risks in the banks under study. The results also showed variations in the impact of the dimensions of financial inclusion, with financial quality and capabilities emerging as the most influential dimension when the dimensions were examined collectively. In light of these findings, the study emphasized the importance of ensuring that the expansion of financial inclusion is accompanied by appropriate attention to operational risk management, with particular emphasis on financial service quality and capabilities to support efficient banking service delivery and the management of associated risks.