The banking expert, Haytham Al-Abidi, confirmed during a televised interview for Libyan WTV channel and Tabadul Platform, that the finance and banking sector suffers from weaknesses in the efficiency of the credit management.
Al-Abidi said a decline in profit of about 56% has been registered during the second quarter of 2020, compared to the second quarter.
“The quantum leap registered in 2017 was due to currency appreciation and high foreign sales services.” He said.
” There is a high concentration in the banking market… As monopolization becomes higher, services and quality become lower in these banks.” The banking expert confirmed.
” During the second quarter of 2020, the clearing accounts rose about 50 %, while the debt ratio reached 21% against the global rate, which is estimated at 5 %.” he added.
According to the expert, the economic growth is linked to the volume of funding and its means. Nevertheless, the banks have assets exceeding 70 billion, which is a great source of financing in the development process and the economic growth as well.
Al-Abidi added that the banking concentration was found in 4 state-owned banks, or only a part of them belonging to the state. These banks are; the Jumhouria Bank, the National Commercial Bank, the Wahda Bank and the Sahara Bank.
“According to the World Bank’s latest statistics, the financial and banking sector in Libya represents about 80 % of the financial industry.”
“The sector is composed of specialized commercial banks, in addition to non-banking financial institutions. We have 19 banks, 4 of which are specialized and are not subject to the Central Bank’s supervision. We also have 2 Executive Offices for Arab and foreign banks, in addition to 9 non-banking financial institutions.” Haytham Al-Abidi said.