The role of knowledge economy on development of banking service in libya: A research on Libyan banks

The Libyan economy, like other developing countries, aims to improve the level of services in the banking sector as a key element in the country's economic development. Especially after the emergence of the knowledge economy, commercial banks had to develop their services in line with the new economy. As the knowledge economy represents the improvement of all processes through the acquisition, production, and exchange of information needed by institutions, the main variables that form the basis of the knowledge economy represented in human capital investment, information communication technology (ICT), innovation in (R&D), and economic incentives and institutional regime. In this context, the study focuses on the basic principles of the knowledge economy and focuses on the role of the knowledge economy in the banking sector and solving the problems facing Libyan commercial banks in the development of banking services. In order to achieve the main purpose of the study, we used the descriptive-analytical method, by using the questionnaire. Where we surveyed a total of 320 employees at six commercial banks operating in the eastern region of Libya. Through incoming questionnaires, we were analyzed 299 questionnaire. The results of the analysis showed a positive relationship between the knowledge economy and the development of banking services and that the knowledge economy plays an active role in the development of banking services, as the sub-variables of the knowledge economy are knowledge, skills, education, IT infrastructure, speed, access to service, research and development, Innovation, institutional regime, economic incentives as well as the sub-dimensions of the developing of banking services that represented in online banking, data transfer services, the use of technology , and customer relations. all of them show a high positive relationship among them. Also, the study includes information on whether there are differences between the knowledge economy and the development of banking services in the banks included in the research. The results of the study showed that knowledge, skills, training, economic incentives, and institutional regime vary according to banks.