The Moderating Effects of Dynamism on Management of Credit Risk and Financial Performance in Commercial Banks, Libya

A company's operating and financial features are derived from its financial performance. Bank performance and credit risk management measures have been linked in the literature. Credit risk management, as well as their effect on performance of bank with moderating effect of dynamism, have not been studied in Libya. Those that participated in the study were commercial banks in western Libya. Members of Libyan commercial banks' executive management, risk committee members and depart ment heads could be potential constituents. They were picked for their ability to manage credit risks as well as their financial performance. In order to better understand how bank risk management influences the financial outcomes of banks, survey particip ants were given standardised questions to complete. A partially least squares (PLS) (SEM) model was used to analyze the empirical data. Based on bank directors’ assessments on credit risk management, the data are related. The statistical research results s upport the hypothesis that uncertainty represents one of the significant moderators between credit risk management and financial performance. Thus, Libyan banks are impacted by their willingness to handle credit risk. The experiment shows that environmenta l uncertainty influences credit risk management, permitting financial improvement to be achieved with minimal degree of uncertainty's influence.