Accounting Analysis of Profitability and its Role in Financial Risk Management: An Applied Study on Libyan Commercial Banks

Abstract

     The study focused on the knowledge of factors affecting profitability and treatment. And to identify the relationship between the profitability of commercial banks and liquidity risk. And to identify the relationship between the profitability of commercial banks and credit risk. The study found that the general average of the profitability of commercial banks reached (4.56) and the standard deviation (1.945). This means that the trends of the sample items after the profitability of the commercial banks are positive and the most influential elements The Bank's goal is to achieve the highest possible profitability rate and to develop strategies for achieving profitability with an average of 4.20, with the lowest effect being the Bank granting credit facilities through rational investment management with an average of 3.98. According to the responses of the study sample financial institutions with studies, models and applications related to financial risks and how to manage them in such a way as to ensure that the bank's assets are not exposed to a decline in value, and to strengthen the position of banks from developing strategies to achieve profitability and the need to strengthen and strengthen the disclosure policy through the Bank's ability to recognize in a timely manner liquidity risk to avoid Losses.