Periodic Circular (105/2013)

Central Bank of Libya
P.O. Box 1103, Al Monzon, Libya - Tripoli, Libya

Reference: CBL/N. 11/1055
Periodic Circular No. (2013/105)
Date: 16 Rajab 1434 AH
Corresponding to: 26 May 2012 AD

To: Chairmen of Bank Boards of Directors
General Managers of Banks
Chairmen of Temporary Administrative Committees in Banks

Greetings...

Subject: Follow-up on Preparations for the Transition to Islamic Banking

In the context of the supervisory and regulatory role of the Central Bank of Libya, in implementation of the provisions of the suspended Banking Law No. (46) of 2012, and its issued instructions regarding the regulation of Islamic banking activities in Libya.

With reference to the letter from the Deputy Governor dated 2 January 2013, regarding the follow-up on the transition project to Islamic banking, and its accepted operational requirements for banks (whether fully or partially), and the formation of working teams from relevant department staff specialized in transition, they are assigned the following tasks:

1. Communicating with the Advisory Committee for Islamic Banking Affairs at the Central Bank of Libya, and cooperating with it technically in this field.
2. Participating in activities, training programs, and technical meetings related to the transition.
3. Working on preparing the banks' transition strategy, including training plans and technical/operational treatment programs, and submitting it to the General Administration for presentation to the Boards of Directors for approval.
4. Overseeing the transition process and addressing its outcomes, and meeting the specific transition requirements of each bank.
5. Any other tasks assigned by the General Administration of the Bank.

With reference to the letter from the Governor of the Central Bank of Libya addressed to the Chairmen of Boards of Directors of Commercial Banks dated 6 May 2013, which referred to Law No. (1) of 2013 regarding the cancellation of interest-based dealings, and requested in light thereof working on placing the implementation subject, as well as confirming the necessity of banks' compliance with the points contained in the aforementioned Deputy Governor's letter, and the importance of providing adequate support to transition teams within their assigned scope, and adhering to supplying the Supervision of Banks and Currency Administration with a detailed report on what has been completed in their transition files, by the end of May this year at the latest, including comprehensive information about transition teams, their members, and the work they have completed.

For importance, we hope compliance with taking the necessary measures in this regard, and the necessity of providing this Administration with the required report within the period specified in the aforementioned Governor's letter.

Peace, mercy of Allah, and blessings be upon you...

Abduljaleed Mohammed Al-Mathouri
Director of the Supervision of Banks and Currency Administration / Acting

The Governor
The Deputy Governor
The Chairman of the Advisory Committee for Islamic Banking Affairs.
Department: Islamic Banking.
CBL/N. 2013/1

www.cbl.gov.ly swift code:CBLJLYLX +218 21 444 1488 : Fax +218 21 333 3591 : Phone