Regulatory Alerts2023-11-09
Central Bank of Libya Circular No. 25/2023 on the Islamic Banks Governance Guide
The Central Bank of Libya issued Circular No. 25/2023 to mandate the implementation of its newly adopted Islamic Banks Governance Guide across all Libyan banks and financial institutions. The directive requires bank board chairmen to adopt the guide's provisions as a general governance framework and ensures ongoing compliance through targeted inspection tasks by the Banking Supervision Department. This circular builds upon previous 2010 governance directives and Law No. 1 of 2005 to standardize corporate governance practices within the Islamic banking sector.
Central Bank of Libya P.O. Box 1103 | Telegraph Address: CBL - Tripoli - Libya
Reference: D.R.M.N 804 Circular No. (25/2023) Date: 04 Safar 1445 (Hijri) / 20 August 2023
Gentlemen, Board Chairmen of Banks,
Subject: Islamic Banks Governance Guide
Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, implementing the supervisory and regulatory role of the Central Bank of Libya, and enhancing the principle of effective corporate governance.
And referring to Circular No. (2010/13) issued on 27 September 2010, regarding the implementation of Central Bank Board Resolution No. (20) of 2010, approving the Governance Guide for the Libyan banking sector.
And referring to you the Islamic Banks Governance Guide, which represents a general framework for the governance of Islamic banks and financial institutions,
It is requested that you take the necessary measures to implement its provisions, and the Banking Supervision Department will follow up on this matter through inspection tasks to ensure compliance of your banks with its contents.
Peace be upon you,
Naji Mohammed Eissa Director of Banking and Monetary Supervision Department
Copies to: Mr. / The Governor Mr. / The Deputy Governor Mr. / The Governor's Advisor for Islamic Banking Affairs Mr. / Deputy Director of the Banking and Monetary Supervision Department for Office Supervision and Compliance Monitoring Mr. / Deputy Director of the Banking and Monetary Supervision Department for Inspection Affairs Mr. / Deputy Director of the Banking and Monetary Supervision Department for Islamic Banking Affairs Gentlemen, Banking Supervision Unit in Benghazi Gentlemen / Heads of Compliance Units at Banks (for follow-up)
Phone: +218 21 3333591, Fax: +218 21 4441488, www.cbl.gov.ly, SWIFT Code: CBLJLYLX