Regulatory Alerts2023-07-12
Central Bank of Libya Decision No. 2 of 2010 on Credit Concentration Limits and Governing Controls and Standards
The Central Bank of Libya issued Decision No. 2 of 2010 to establish strict limits and standards for credit concentration, replacing the previous 2008 regulations. The decision mandates that individual or related group exposures must not exceed 20% of a bank's core capital, with aggregate exposure to high-risk borrowers capped at eight times the core capital. It further regulates foreign correspondent balances, securities investments, equity participations, and fixed assets to ensure financial stability and enforce compliance through specific collateral valuation and remedial measures.
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