The impact of the monetary base and credit granted by the Central Bank on local bank credit in Libya during the period 1990-2022 using the ARDL model

Abstract

This study aims to investigate the relationship between Central Bank’s credit facilities and the Monetary Basie and their influence on the local banking credit in the period from1990 to 2022. In this study, e-views measurement program was used for economistic analysis by using ARDL Autoregressive Distributed Lag Model to test the existence of long-run relationship between Central Bank’s credit facilities and the Monetary Base on the local banking credit and to test the causal relationship between the variables. The results revealed the existence of a causal, logical and complementary relationship between Central Bank’s credit and the Monetary Basie on the local banking credit from Commercial banks over the study period.