The Central Bank of Libya, Tripoli, instructed the heads and members of the directors boards of commercial banks regarding financing formulas for individuals and for various economic activities.
Whereas, all banks are required to update their current policy with regard to financing, investment and risks, provided that it includes all the formulas targeted to be activated by the bank, and a copy of it is referred to the Banking and Monetary Control Department, no later than February 28, 2022, so the financing and investment policy must be from the legitimate supervisory board of the bank’s management, and approved by it.
Also, the financing and investment policy should take into account some criteria, including defining the powers and responsibilities of the financing decision-makers, diversifying Islamic financing methods, in line with the objectives and policy of the bank, and including the mechanism for receiving funds as specified by the banking standard issued by the Central Legitimate Supervisory Board No. (12) Concerning the absolute joint investment accounts, in which the controls of each financing or investment formula that are implemented, the funding ceilings, powers, deadlines, work mechanisms, and legitimate and technical controls are determined, including the distribution of the portfolio to all the formulas approved by the bank, with the need to link it to the priorities of economic development, so that it targets everyone in financing. (individuals, companies), and it contributes to the financing of the various sectors, provided that it allocates a percentage of (10%) of these financings.
In conclusion, it called for limiting lending to related parties, such as partners, shareholders, general managers, executives, and others, and working to deal with the bank’s previous responsibilities and comments and to enhance debt collection methods to ensure the recovery of all the bank’s rights.
Taken from Sada Website