Applying of Islamic Economic Principals and Its Impact on Reducing Administrative Corruption in Libyan Islamic Banks

Abstract

The study is essential in identifying the mechanisms of applying the Islamic economy and their impact on reducing administrative corruption in Libyan Islamic banks. The researcher used the questionnaire as a tool for the study. The study population was limited to the employees of the Libyan republic and oasis banks, which numbered 550 male and female employees. The
data were analyzed by SPSS and SMART-PLS. Three hundred questionnaires were distributed to the employees of these banks, 235 questionnaires were retrieved, and 76% and 230 questionnaires met the conditions. Where the study sample was selected by random sample method, and arithmetic averages were used to find out the level of respondents' response to the paragraphs of the study variables. The results of the study showed that there was a strong positive effect with a statistical significance at a significant level (α≤0.05) between the application of the rules of Islamic economics and the reduction of administrative corruption, in addition to the existence of a positive effect between legal, financial controls and the use of Islamic financing mechanisms and government intervention on the reduction of administrative corruption, with his banishment: Bribery and exploitation of public office. The study highlights future research, which is, conducting more studies on applying the rules of the Islamic economy to other Libyan banks and comparing the results due to its positive impact on the state's national economy—analyzing and evaluating the practice of the rules of the Islamic economy on the Libyan Islamic banks.