The Degree of Risk and Its Impact on the Use of Salam Financing: A field Study of the Libyan Agricultural

Abstract

   This study aims to examine the impact of risks as a major impediment to the application of the Salam financing formula in the Libyan Agricultural Bank. The study addresses the challenges and constraints that limit the adoption and effective implementation of Salam financing within the bank. Specifically, it seeks to assess the degree to which various types of risks affect the application of this Islamic financing mechanism. To achieve its objectives, the study adopts a descriptive-analytical approach to investigate and analyze the relevant study variables. Data were analyzed using the Statistical Package for the Social Sciences (SPSS).

   The findings indicate that the risks examined constitute significant obstacles to the adoption and implementation of the Salam financing formula by the Libyan Agricultural Bank. These obstacles may limit the bank’s ability to effectively utilize Salam financing as an alternative Islamic financing mechanism