The impact of Capital Adequacy on strategic foreign partnerships in the banking sector of Libya is significant. Capital Adequacy refers to the amount of capital that banks are required to hold to ensure their financial stability and ability to absorb potential losses. In the context of strategic foreign partnerships, capital adequacy requirements can influence the decision-making process for both domestic and foreign banks looking to form partnerships in Libya. we witnessed in the past 20 years that there were a couple of successful and failed partnerships such as a story of Aman- Banco Esprito Santo banks.
In Libya, there are different stories of partnerships in banking sector. it can be said that all domestic banks were the failed partners, but in the case of Aman-Banco Esprito Santo was unique. the reason why is because of the resolution of Banco Esprito Santo. in Portugal.
Boost both local and foreign investor confidence in the banking system of libya.
Reduce systemic risks and promote economic growth through currency appreciation, foreighn direct investment and reduces run-on-a-bank efffect if capital adequacy regulations are adhered.
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