Regulatory Alerts2023-07-12
Central Bank of Libya Circular 2011/2: Governor's Decision No. (20) on Amending Bank Financial Structures and Credit Portfolio Limits
The Central Bank of Libya, through Governor's Decision No. (20) of 2011, amends the financial structure and credit portfolio limits for commercial banks by restricting overdraft facilities to short-term operations and capping both real estate overdrafts and commercial loans at 30% of each bank's direct net credit portfolio. Banks exceeding these thresholds are granted a one-year compliance period to adjust their portfolios, while maintaining risk diversification and adherence to existing concentration limits. The Banking and Currency Supervision Department is mandated to monitor implementation and ensure all institutions settle their status within the authorized timeframe.
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