The Failure Of Financing Procedures For Funding Small Projects In Libya,An Empirical Study On North Africa Bank

Abstract

This study aims to identify the reality of Micro-finance projects in Libya and evaluating the reason of failure in financing procedures used for funding the small projects associated with North Africa Bank. In addition to that the study discusses the forming, functions, and capabilities of Sharia Supervisory Board. The number of participants equal (400) employees from branches of the bank. The instruments for collecting data is questionnaire. The result showed deficiency in financing procedures for funding mall projects in Libya, also the absence of Islamic standards in the general financing policy of the bank that help investors to select the right project matching Islamic principles in finance. It is concluded that the bank needs for financing standards to be applied by the supervisory board inside the bank. While the bank depends on Murabaha only. Therefore, the study recommends to use a general finance guideline which organizes the financing procedures as well as the bank should define the means for Islamic finance adopted by the bank to help employees applying these procedures appropriately so that to enhance the reputation of the bank.