Research prposal Proposal Example | Topics and Well Written Essays - 2000 words

Prposal - Research Proposal Example In the era of globalization most of the countries use the strategy of deregulation to reduce the government control on the domestic industry. Banking sector has also not been left alone. Governments are also exercising lesser amount of control on the banks. But to ensure that the banks are performing efficiently, the Central bank has a big role to play. It is the central bank of a nation in whose hands there lay the responsibilities of creating favorable environments for the bank to operate under. Efficiency of the banks in a country depends on the efficiency of the strategies adopted by the central bank of the country. When a nation adopts the strategy of increasing openness, its economy goes through a substantial change as the domestic market of the country becomes exposed to international market and therefore to fierce competition from international firms. Under this situation central bank of any country needs to make cautious steps in order to make the domestic banks strong enough to survive under strong competition as well as creating favorable environment for the operation of international banks. Particular in developing countries, central banks have to be very efficient in deal with the continuously changing financial environment under intense liberalization. Unless and until the central bank becomes successful in fulfilling its major objective of maintaining financial stability, the country’s financial sector will move towards severe financial turmoil. (Papademos, 2008) Libya, a developing nation of Africa, has significantly participated in the process of globalization. Its banking sector has therefore been also not left alone. Intensive reform measures have been undertaken for the baking industry of the country to pave the way of integration of domestic banking sector with the global one. But here lays a big question regarding how far the banking industry of Libya