Electronic Cards and Their Role in Mitigating the Liquidity Crisis in Libyan Commercial Banks An Applied Study of Jumhouria Bank – Al-Khums / Al-Merqab Branch

Abstract

In the era of the digital economy and driven by advancements in information and communication technology, the banking sector has undergone massive transformations. This has led to the emergence of electronic cards as a form of electronic banking service—a trend banks have adopted to improve performance, enhance customer satisfaction, and attract new clients. This study aimed to examine the role of electronic cards in mitigating the liquidity crisis facing commercial banks, analyze the current state and prevalence of electronic card usage among customers in Libya, and assess how these cards reduce reliance on physical cash—thereby helping to alleviate the liquidity crisis. To achieve these objectives and test the study's hypotheses, a set of hypotheses was formulated: a main hypothesis (stating that electronic cards play a role in curbing the worsening liquidity crisis in Libyan commercial banks) and two sub-hypotheses. A descriptive-analytical approach was employed, and a questionnaire was designed and distributed to a sample of customers at the Al-Jumhouria Bank (Al-Khums branch) to gather the necessary data. The study yielded several key results: the relative weight of all items across the first two sections was 74.1%, reflecting notable user satisfaction; however, there was relative concern regarding security and confidentiality, which received a comparatively low rating. Additionally, the use of electronic cards facilitated purchases across different cities and helped customers avoid queues for cash withdrawals, while also saving time and effort to an acceptable degree. Based on these findings, the study offered several recommendations, most notably the need to address the problems customers encounter when using electronic cards. Bank management must increase the number of ATMs and point-of-sale (POS) terminals across various regions to alleviate pressure on existing units. Furthermore, system integration is essential—specifically, establishing better connectivity between ATM and POS networks to ensure a seamless, integrated electronic banking experience.