The Impact of Using Electronic Cards on Mitigating the Liquidity Crisis in Commercial Banks

Abstract

This study investigates the impact of electronic card usage in mitigating the liquidity crisis experienced by Libyan commercial banks, with Misurata city serving as the case study. The research employed a descriptive-analytical methodology, utilizing a questionnaire distributed among a sample of banks customers. The findings reveal a significant positive impact of electronic card adoption in easing liquidity shortages by enhancing customer and merchant confidence in electronic transactions and improving banking oversight of electronic payment systems. On the other hand, the study highlights several challenges that impede the optimal utilization of electronic cards, notably the weakness of technological infrastructure. Accordingly, the study recommends strengthening communication networks, expanding the availability of electronic points of sale, intensifying awareness campaigns, and fostering interbank cooperation to enhance electronic banking services. These measures are expected to contribute effectively to overcoming the liquidity crisis in Libyan commercial banks.