BANKS AND THE FINANCIAL SECTOR
Libya’s banking system has undergone significant changes since the 2011 overthrow of former dictator Muammar Gaddafi. Prior to that, the Libyan banking system was heavily centralized, with the state controlling most of the country’s financial institutions. After the revolution, the new government attempted to diversify the financial sector by encouraging private investment and competition.
Currently, the Central Bank of Libya (CBL) is the country’s primary monetary authority, responsible for issuing currency and regulating the banking sector. There are also a number of private banks operating in the country, including the Libyan Foreign Bank, which specializes in international trade finance.
In terms of international relations, the CBL has relationships with a number of foreign central banks, including those in Italy, France, and Turkey. The CBL also maintains a correspondent banking relationship with the Federal Reserve Bank of New York, allowing for the transfer of funds between Libya and the United States.
However, Libya’s banking system has been subject to a number of challenges in recent years, including political instability, economic sanctions, and the ongoing conflict between rival governments. As a result, many foreign banks have reduced their exposure to Libya, and the country has struggled to attract foreign investment.
The Libyan banking system holds a variety of assets, including both domestic and foreign investments.
Domestically, the banking system holds assets such as loans, government securities, and deposits. The Central Bank of Libya holds the majority of these assets, including foreign currency reserves, which are used to stabilize the country’s currency and maintain liquidity in the financial system.
In addition to domestic assets, Libyan banks also hold foreign assets, such as foreign currency, government bonds, and stocks. The Libyan Foreign Bank, in particular, specializes in international trade finance and holds foreign assets to facilitate cross-border transactions.
However, the ongoing conflict and political instability in Libya have made it difficult for the country’s banking system to maintain and grow its asset base. Economic sanctions and the freezing of Libyan assets by foreign governments have also restricted the ability of Libyan banks to invest and expand their portfolios.
The Libyan banking sector is a core component part of commerce in Libya sector interacting with multiple areas, for example;
- Government and public sector entities: Libyan banks work closely with the government and various public sector entities to manage the country’s monetary policy, regulate the banking industry, and provide financial services to the public.
- Private sector businesses: Libyan banks provide financial services to various private sector businesses, including small and medium-sized enterprises (SMEs), multinational corporations, and local businesses.
- Individuals: Libyan banks also interact with individual customers, providing them with services such as savings accounts, loans, and credit cards.
- International entities: Libyan banks interact with international entities such as foreign banks, international financial institutions, and foreign investors. These interactions are typically aimed at facilitating international trade and investment, as well as promoting economic development.
- Insurance companies: Banks in Libya often partner with insurance companies to offer financial services such as insurance policies, investment products, and pension plans.
- Real estate developers and construction companies: Libyan banks provide financing and other financial services to real estate developers and construction companies for their projects.
- Non-governmental organizations (NGOs): Banks in Libya work with NGOs to facilitate donations, financing, and other financial services to support humanitarian causes and development projects.
- Exporters and importers: Libyan banks facilitate international trade by providing financing, trade finance, and other financial services to exporters and importers.
- Stock exchange: Libyan banks also participate in the Libyan Stock Exchange, providing brokerage services and investment advice to clients looking to invest in publicly traded companies.
- Financial regulators: The Libyan banking sector is regulated by the Central Bank of Libya, which works to ensure that banks comply with banking regulations, promote financial stability, and safeguard the interests of depositors and the public.
In summary, the Libyan banking sector interacts with a diverse range of entities in the commercial landscape playing a crucial role in the country’s commercial landscape, providing a range of financial services to various entities across the economy.
THE CENTRAL BANK OF LIBYA
Chairman: Al-Siddiq Al-Kabir
Head Office: Al Fatah Street, Tripoli
Website: https://cbl.gov.ly/en/
The CBL is also responsible for managing Libya’s foreign reserves and ensuring the stability of the exchange rate. It plays an important role in facilitating international trade and financial transactions by maintaining the convertibility of the Libyan dinar and regulating the flow of foreign exchange.
In addition to its monetary policy responsibilities, the CBL also acts as the government’s banker, managing its accounts and providing financing for government operations. It also supervises and regulates commercial banks operating in Libya, with the aim of ensuring the safety and soundness of the banking system.
Overall, the CBL plays a crucial role in maintaining the stability and health of Libya’s economy, particularly in times of economic stress or crisis. Its actions can have a significant impact on the country’s financial and economic well-being, and it is thus closely watched by both domestic and international observers.
The Central Bank of Libya (CBL) has a hierarchical structure consisting of several departments and divisions, each with its specific roles and responsibilities. At the top of the hierarchy is the Governor, who is appointed by the Libyan government and serves as the head of the CBL. The Governor is responsible for overseeing the overall operations of the bank, setting monetary policy, and representing the CBL in its dealings with other national and international organizations.
Under the Governor, there are several deputy governors who manage specific areas of the bank’s operations. These include the Deputy Governor for Monetary Policy, the Deputy Governor for Financial Supervision, and the Deputy Governor for Administration and Operations.
The CBL also has several departments and divisions responsible for specific functions. These include the Monetary Operations Department, which is responsible for implementing monetary policy and managing the country’s foreign exchange reserves, and the Banking Supervision Department, which is responsible for regulating and supervising commercial banks and other financial institutions operating in Libya.
Other important departments and divisions include the Research and Statistics Department, the Legal Department, the Human Resources Department, and the Information Technology Department.
Overall, the CBL’s structure is designed to ensure effective and efficient management of the country’s monetary policy and banking system, with clear lines of responsibility and accountability.
All banks operating in Libya come under the authority of the CBL. This includes both state-owned and privately owned banks. Some of the major banks operating in Libya that are under the regulatory and supervisory authority of the CBL are:
- National Commercial Bank
- Sahara Bank
- Wahda Bank
- Libyan Foreign Bank
- Al-Jumhuriya Bank
- Arab Commercial Bank
- United Bank for Commerce and Investment
- Union of Arab Banks
- Mediterranean Bank
- Libyan Islamic Bank
- Nuran Bank
- Yaqeen Bank
- Aman bank
- Andalus Bank
- Assaray Trade and investment bank
- National Commercial Bank
Chairman: Musbah Akkari
Head Office: Al-Baidha, Libya
Website: https://www.ncb.ly/en/
The National Commercial Bank (NCB) is the largest commercial bank in Libya, with a network of branches across the country. It provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services.
The NCB was established in 1969 as a state-owned bank, and it played a significant role in financing the country’s development projects. Over the years, the bank has expanded its operations and now offers a wide range of banking services to individuals, businesses, and government entities.
In addition to its retail banking services, the NCB also offers corporate banking services, including project finance, syndicated lending, and trade finance. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
The NCB is regulated and supervised by the CBL and is subject to the same laws and regulations as other banks operating in the country.
- Sahara Bank
Chairman: Mohamed Abukhair and
General manager: Abu Bakr Al-Wadani.
Head Office: Jakarta street, Tripoli, Libya
Website: N/K
Sahara Bank is a commercial bank in Libya that was established in 1999. It is headquartered in Benghazi, Libya’s second-largest city, and has a network of branches across the country.
Sahara Bank provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
In addition to its retail banking services, Sahara Bank also offers corporate banking services, including project finance, syndicated lending, and trade finance.
The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders.
- Wahda Bank
Chairman: Abdelkarim Mohamed Alshahati
Head Office: Gamal Abdalnasser Street. Al Fadiel Abu Omar Square. Al Berka – Benghazi – Libya.
Website: http://www.wahdabank.com/
Wahda Bank, also known as the United Bank for Commerce and Investment, is a commercial bank in Libya. It was established in 1970 following a decree for amalgamation of five separate banks working in Libya and is headquartered in Tripoli, with a network of branches across the country.
Wahda Bank provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
In addition to its retail banking services, Wahda Bank also offers corporate banking services, including project finance, syndicated lending, and trade finance.
The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders.
- Libyan Foreign Bank
Chairman: Muhammad Ali Al-Darrat (Chairman),
General Manager: KHALED AMRO ALGONSEL
Head Office: Tripoli Dat El Imad Administrative Complex, Libya
Website: http://www.lfb.ly/
The Libyan Foreign Bank (LFB) is a state-owned commercial bank in Libya andoperates through its head office in Tripoli – Libya. LFB (a Libyan Joint Stock Company) started its activity in the year 1972 with a paid up capital 20 million Libyan Dinars and has a network of branches in Libya and abroad.
The LFB primarily focuses on international banking services, including trade finance, correspondent banking, and foreign exchange transactions. It is one of the main banks through which Libya conducts its international transactions.
In addition to its international banking services, the LFB also offers domestic banking services, including personal and business banking, and has a strong focus on supporting small and medium-sized enterprises (SMEs).The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders, which are the Libyan government and other state-owned entities.
- Al-Jumhuriya Bank
President of the Board of Directors: Dr. Khalid Al- Mabrouk Abdullah,.
General Manager: Abdul Razzaq Al-Tarhouni,
Head Office: Independence St, Tripoli, Libya
Website: http://www.jbank.ly/
Al-Jumhuriya Bank is a commercial bank in Libya. It was established in 1968 and is headquartered in Tripoli, with a network of branches across the country.
Al-Jumhuriya Bank provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
In addition to its retail banking services, Al-Jumhuriya Bank also offers corporate banking services, including project finance, syndicated lending, and trade finance.
The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders.
- Arab Commercial Bank
General manager: Adel Gammudi
Head Office: Jaafar bin Abi Taleb street, Tripoli, Libya
Website:
Arab Commercial Bank (ACB) is a commercial bank in Libya. It was established in 1972 and is headquartered in Tripoli, with a network of branches across the country.
ACB provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
In addition to its retail banking services, ACB also offers corporate banking services, including project finance, syndicated lending, and trade finance.
The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders.
- United Bank for Commerce and Investment
Chairman: Abdullah Saudi
CEO: Ayman El Gammal
Head Office: Janzour, Tripoli, Libya
Website:
The United Bank for Commerce and Investment (UBCI) is a commercial bank in Libya. It was established in 2005 and is headquartered in Benghazi, with a network of branches across the country.
UBCI provides a range of banking services, including personal and business banking, trade finance, treasury services, and international banking services. The bank has a strong focus on supporting small and medium-sized enterprises (SMEs) and has established special programs to provide financing and support to these businesses.
In addition to its retail banking services, UBCI also offers corporate banking services, including project finance, syndicated lending, and trade finance.
The bank’s Board of Directors is responsible for the overall management of the bank, and its members are appointed by the General Assembly of the bank’s shareholders.
- Union of Arab Banks
Governor/Head:
Head Office: Bin Ghashir, Tripoli, Libya.
Website:
The Union of Arab Banks (UAB) is a pan-Arab banking industry association, and it does not operate as a commercial bank. The UAB is headquartered in Beirut, Lebanon, and has member banks from across the Arab world, including Libya.
The UAB aims to promote and develop the banking sector in the Arab world, enhance cooperation and exchange of information among member banks, and represent the Arab banking industry in regional and international forums. The association also provides training and professional development programs for bankers and finance professionals in the region.
As a member of the UAB, Libyan banks can participate in various programs and initiatives offered by the association and benefit from its expertise and network of contacts in the industry.
- Mediterranean Bank
Governor/Head: Mohamed Kurd, board member(
Head Office: Omar Al Mokhtar Street, Benghazi, Libya
Website: http://www.meditbank.net/
In 1997, the Mediterranean bank was founded under the name Benghazi Commercial Bank, and in March of that year, it began offering services to the public. It initially opened a single branch in Benghazi with a fully paid capital of LYD 900,000, which represented 75% of its total subscribed capital of LYD 3,000,000 as per its founding contract and Articles of Association. It is noteworthy that the bank has been distributing dividends to its shareholders since its first budget was released on December 31, 1998.
After the issuance of Law No. (1) of 2005, the bank changed its name to the Midbank, and increased its authorized capital to LYD 33,333,000 in compliance with the law’s provisions. The bank opened up its capital for subscription, which was well received by citizens. As of December 31, 2005, the bank’s capital size was LYD 3,000,000, while it was LYD 8,381,386 as of December 31, 2006, and LYD 12,058,976 as of December 31, 2007, which confirms the bank’s strong position in the Libyan market.
The bank opened its first branch outside of Benghazi in Tripoli on December 3, 2006. Currently, the bank is working to open another branch in Tripoli, and has a branch in Misrata, and a second branch in Benghazi.
- Libyan Islamic Bank
Chairman: Abdullah Mohamed El- Bishry, Chairman
Head Office: Abu Miliana, Tripoli, Libya
Website: http://www.lib.com.ly/
The Libyan Islamic Bank (LIB) is a commercial bank based in Tripoli, Libya. It was established in 2017 with a capital of 250 million Libyan dinars. The bank engages in Islamic banking activities, in accordance with the provisions of Islamic Shariah and applicable legislation. Its operations are based on financial and investment intermediation, which involves accepting deposits from depositors and investing these funds in various areas such as sales, finance, and investment, both in cash and non-cash forms, including partnerships, mudarabah or any other form of Islamic finance. The bank also provides a range of other banking services with the aim of achieving economic and social added value.
In conducting all of its activities, the Libyan Islamic Bank adheres to the principles of Shariah and the technical standards adopted in the field of Islamic finance. The bank is guided by the relevant Shariah supervisory authority and is fully compliant with the applicable legislation, as per the amendments made to the Banking Law for the year 2012 and the issuance of Law No. 1 for the year 2013, which prohibits transactions based on interest.
- Nuran Bank
Chairman: Abdullah Mohamed El- Bishry, Chairman
Head Office: Abu Miliana, Tripoli, Libya
Website: http://www.nub.ly/
Nuran Bank Libya was established in 2013, and it is licensed by the Central Bank of Libya to offer a range of financial services and products. The bank provides retail banking, corporate banking, and investment banking services, including current accounts, savings accounts, loans, overdrafts, trade finance, and foreign exchange.
The structure of Nuran Bank Libya is similar to that of other commercial banks. It has a board of directors that is responsible for the overall strategic direction of the bank, and an executive management team that oversees day-to-day operations. The bank is divided into several departments, including finance, operations, risk management, compliance, and marketing.
The role of Nuran Bank Libya is to support economic development in Libya by providing financial products and services to individuals, small and medium-sized enterprises (SMEs), and large corporations. The bank aims to be a leader in the Libyan financial sector by offering innovative products and services that meet the needs of its customers.
In summary, Nuran Bank Libya is a commercial bank that offers a range of financial services and products, with the aim of supporting economic development in Libya. Its structure is similar to that of other commercial banks, with a board of directors and an executive management team overseeing day-to-day operations.
- Yaqeen Bank
Chairman: Omar Ali Amer
Head Office: Tripoli Tower Bab Bin Ghashir Tripoli Libya
Website: http://www.yaqeenbank.ly/
Yaqeen Bank Libya, “also known as “YBL,” is a Libyan bank that offers a range of financial services.
Yaqeen Bank Libya was established in 2013 and is headquartered in Tripoli, Libya. It is licensed by the Central Bank of Libya and offers a variety of banking services, including retail banking, corporate banking, and investment banking services. The bank’s products and services include savings and checking accounts, loans, credit facilities, treasury and investment products, foreign exchange, and trade finance.
The structure of Yaqeen Bank Libya is similar to that of other commercial banks. It has a board of directors responsible for the overall strategic direction of the bank, an executive management team that oversees day-to-day operations, and various departments such as finance, operations, risk management, compliance, and marketing.
The role of Yaqeen Bank Libya is to provide financial products and services that meet the needs of its customers and support economic development in Libya. The bank aims to be a leader in the Libyan financial sector by offering innovative financial products and services.
- Aman bank
Chairman: Mokhtar Eshili
Head Office: Gurji Road, Hay Al-Andalus, Tripoli
Website: www.aman-bank.com
Aman Bank is a Libyan commercial bank that provides a range of financial services, including savings and current accounts, loans, credit cards, and trade finance. The bank was established in 2003 and has its headquarters in Tripoli, Libya.
In terms of structure, Aman Bank is a private commercial bank with a board of directors and executive management team that oversee the bank’s operations. The bank has branches located throughout Libya, providing financial services to individuals and businesses across the country.
In terms of engagement, Aman Bank engages with various entities in the Libyan commercial landscape, including government and public sector entities, private sector businesses, individuals, and international entities. The bank’s engagement with these entities is primarily focused on providing financial services, such as loans, credit facilities, and trade finance, to support economic growth and development in Libya.
Additionally, like all banks operating in Libya, Aman Bank is regulated by the Central Bank of Libya. The bank is required to comply with banking regulations, such as maintaining adequate capital reserves, and is subject to regular inspections by the Central Bank to ensure compliance.
In conclusion, Aman Bank is a private commercial bank that operates in Libya and provides a range of financial services to individuals and businesses across the country. The bank engages with various entities in the Libyan commercial landscape and is regulated by the Central Bank of Libya.
- Andalus Bank
Chairman: Mohamed Abdel Salam Shukri
Head Office: Tripoli Tower Floor 17, 18, Tower 2 Tripoli, 91511 Libya
Website: http://www.andalusbank.com/
Andalus Bank is a Libyan commercial bank that provides a range of financial services to individuals and businesses, including savings and current accounts, loans, and credit facilities. The bank was established in 2012 and has its headquarters in Tripoli, Libya.
In terms of structure, Andalus Bank is a private commercial bank with a board of directors and executive management team that oversee the bank’s operations. The bank has a network of branches located throughout Libya, providing financial services to customers across the country.
In terms of engagement, Andalus Bank engages with various entities in the Libyan commercial landscape, including government and public sector entities, private sector businesses, and individuals. The bank’s engagement with these entities is primarily focused on providing financial services to support economic growth and development in Libya.
Additionally, like all banks operating in Libya, Andalus Bank is regulated by the Central Bank of Libya. The bank is required to comply with banking regulations, such as maintaining adequate capital reserves, and is subject to regular inspections by the Central Bank to ensure compliance.
In terms of social engagement, Andalus Bank has been involved in various initiatives to support the community in Libya, such as providing financial support to local charities and participating in community development projects.
In conclusion, Andalus Bank is a private commercial bank that operates in Libya and provides a range of financial services to individuals and businesses across the country. The bank engages with various entities in the Libyan commercial landscape and is regulated by the Central Bank of Libya. Andalus Bank has also been involved in social initiatives to support the local community in Libya.
- Assaray Trade and investment bank
Chairman: Noman Al-Bouri
Head Office: Tripoli Tower Floor 17, 18, Tower 2 Tripoli, 91511 Libya
Website: http://www.atib.ly/
Assaray Bank is a Libyan commercial bank that provides a range of financial services to individuals and businesses, including savings and current accounts, loans, and credit facilities.
The bank was established in 2013 and has its headquarters in Benghazi, Libya.
In terms of structure, Assaray Bank is a private commercial bank with a board of directors and executive management team that oversee the bank’s operations. The bank has a network of branches located throughout Libya, providing financial services to customers across the country.
In terms of engagement, Assaray Bank engages with various entities in the Libyan commercial landscape, including government and public sector entities, private sector businesses, and individuals. The bank’s engagement with these entities is primarily focused on providing financial services to support economic growth and development in Libya.
Additionally, like all banks operating in Libya, Assaray Bank is regulated by the Central Bank of Libya. The bank is required to comply with banking regulations, such as maintaining adequate capital reserves, and is subject to regular inspections by the Central Bank to ensure compliance.
Assaray Bank is also involved in social initiatives to support the community in Libya, such as providing financial support to local charities and participating in community development projects.
In conclusion, Assaray Bank is a private commercial bank that operates in Libya and provides a range of financial services to individuals and businesses across the country. The bank engages with various entities in the Libyan commercial landscape and is regulated by the Central Bank of Libya. Assaray Bank has also been involved in social initiatives to support the local community in Libya.
All the above banks are committed to maintaining the highest standards of corporate governance and have implemented initiatives to ensure transparency and accountability in their operations.
FOREIGN-OWNED BANKS ARE NOT CURRENTLY OPERATING OR HAVE LIMITED OPERATIONS IN LIBYA.
Since 2011, the country has faced political instability and security challenges, which have resulted in a volatile economic situation. As a result, many foreign companies, including banks, have suspended their operations in the country or have withdrawn altogether.
However, before the political crisis, several foreign banks had a presence in Libya, including HSBC, Standard Chartered, and Arab Banking Corporation (ABC). These banks provided a range of services, including corporate banking, trade finance, and investment banking. It is unclear when these banks will fully resume their operations in Libya.
LIBYA’S BANKING SECTOR IS HUGELY DIVERSE. THE INDUSTRY HAS SEEN SIGNIFICANT DISRUPTION BUT A RETURN TO STABILITY AND PRODUCTIVE ENGAGEMENT IN THE LAST 18 MONTHS TO 2 YEARS. WHILST THIS BRIEFING DOCUMENT HIGHLIGHTS THE MAJOR PLAYERS THERE ARE MANY MORE.
PLEASE CONTACT THE BRITISH LIBYAN BUSINESS ASSOCIATION IF YOU REQUIRE FURTHER INFORMATION OR ASSISTANCE TO HELP GUIDE YOU IN DEVELOPING OPPORTUNITIES AND COMMERCIAL ACTIVITIES IN LIBYA.
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