This study revolves around evaluating the impact of digital transformation on developing banking operations and enhancing the quality and transparency of financial reporting in Libyan commercial banks. It primarily aimed to analyze the extent to which digital technologies align with the requirements of the regulatory framework, particularly Law No. (6) of 2022, and to determine the reflection of this alignment on the qualitative characteristics of accounting information, in terms of relevance, reliability, and comparability. To achieve this, the study adopted the descriptive analytical approach by employing content analysis of documents and legislations issued by the Central Bank of Libya, in addition to the International Financial Reporting Standards (IFRS), in a way that ensures building an analysis based on integrated regulatory and professional foundations. The study sample consisted of a set of legal and regulatory frameworks, including the Electronic Transactions Law, the Banking Governance Guide (2024), and the Data Protection Regulation (2025), reflecting the comprehensiveness of the regulatory environment under study.
The results of the study showed that the legislative environment in Libya is witnessing a noticeable development that supports the shift toward digitalization at the legal level; however, this development has not been accompanied by a similar maturity at the level of practical implementation, in light of the persistence of what can be described as “formal digitalization,” and the existence of a technological and institutional gap that limits the effective utilization of existing legislative frameworks. This has been reflected in a clear variation in the levels of disclosure and transparency among commercial banks. This indicates that the problem does not lie in legislative deficiency as much as it is related to weak integration between the technological infrastructure and the requirements of the actual implementation of international standards. In light of these results, the study recommended that the Central Bank of Libya should assume a more effective role by issuing a unified national guiding framework that regulates the relationship between digital systems and the requirements of international standards, in addition to obligating banks to adopt and activate electronic auditing systems. This would contribute to narrowing the gap between the legislative framework and practical implementation, improving the quality of financial reports, and enhancing confidence in the Libyan banking system.