Central Bank of Libya Circular No. 7/2023 on Improving Banking Services Quality

Central Bank of Libya
P.O. Box 1103, Telegram Address: MasrafLibya - Tripoli, Libya

Reference: I.R.M.N. 804
Circular I.R.M.N. No. (7/2023)
Date: 02 Rajab 1444 AH
Corresponding to: 24 January 2023

To: Chairmen of Board of Directors at Banks
To: General Managers of Banks

Greetings,

Subject: Improving the Quality of Banking Services

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and within the framework of the supervisory and regulatory role exercised by the Central Bank of Libya on banks operating in Libya. And with reference to Circular I.R.M.N. No. (2005/1) dated 01 January 2005, concerning improving the quality of banking services provided to bank customers. And with reference to the periodic letter I.R.M.N. No. (2009/162) dated 15 November 2009, urging banks to improve the quality of services provided by bank branches and agencies. And to Circular I.R.M.N. No. (2020/03) dated 10 May 2020, concerning customer protection, attached with the Customer Protection Manual and complaint submission form.

In light of the interest shown by the Central Bank of Libya and the vision of the Banking and Currency Supervision Department to transition to the latest standards and requirements for effective banking supervision, avoiding risks, and developing the banking sector to keep pace with trends aimed at national economic development by consolidating stakeholder confidence in the banking sector and enhancing competition among banks, thereby raising the overall efficiency of the banking sector, while avoiding negative phenomena affecting the reputation of Libyan banks. We inform you of the issuance of the Central Bank of Libya's instructions regarding the necessity to pay attention to the following:-

1. Responsible marketing of electronic services provided to customers, and working to reduce congestion at service counters in branches and agencies by expanding the issuance of electronic cards while committing to accelerating the issuance process.
2. Increasing and doubling the number of ATMs and committing to their appropriate geographical distribution, with commitment to periodic and preventive maintenance of these machines, replacing idle ones with new and advanced ones, and taking measures to monitor them technically and securely to ensure proper usage.
3. Working to double the number of Point of Sale (POS) terminals in use by implementing necessary marketing and promotional plans to encourage merchants to use these points, with the necessity of ensuring their electronic monitoring and giving them due care.
4. Establishing appropriate mechanisms to organize cash withdrawal operations in branches and agencies, while working to provide liquidity daily according to well-studied action plans within a specified timeframe.
5. Taking measures to provide customers with cheque books within three working days from the request date, in addition to focusing on providing certified cheque services at all branches and agencies.

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6. The necessity of paying attention to the appearance of bank branches and agencies through the following:-
   a- Carrying out periodic maintenance and presenting them in an appropriate appearance. b- The necessity of clearly advertising the prices of services and products provided by banks and their branches. c- Adopting systems and means sufficient to reduce the time in providing customer services. d- Ensuring the sufficiency of tellers in branches and agencies, and committing to increasing the number of service counters during peak hours and processing customer salaries. e- Mandating employees to wear appropriate uniforms and motivating them to do so. f- Alerting all customer-facing employees to the necessity of discipline in dealing with customers, responding to their inquiries and requests, and adhering to the official working hours specified by the Central Bank of Libya.
7. Designing and implementing appropriate mechanisms to develop customers' knowledge, skills, and awareness, enabling them to understand the fundamental risks of transactions conducted with the bank, make appropriate decisions for themselves, and direct them to the appropriate entity to obtain information when needed.
8. Focusing on the bank's official social media pages on financial and banking awareness for customers, and developing their knowledge and skills.
9. The necessity of protecting and monitoring customer deposits, savings, and other financial assets by establishing supervisory systems with a high level of efficiency and effectiveness to limit fraud, embezzlement, or misuse.
10. Ensuring that external entities entrusted with tasks operate in the best interest of their customers, and banks bear responsibility for protecting them.

Therefore, you are requested to implement these instructions and give the subject full attention and due care to ensure limiting negative phenomena and practices affecting bank branches and agencies, and raising the level of banking services they provide, along with submitting our Strategic Plan for 2023 to enhance the efficiency of banking services as mentioned above, by a maximum deadline of 31 March 2023. These instructions will be evaluated and monitored by the Banking and Currency Supervision Department for the Executive Management and Board of Directors at banks to assess their implementation of the required plan.

... Yours faithfully, all ...

Naji Muhammad Aissa
Director of the Banking and Currency Supervision Department

• To: The Governor
• To: Director of Payments and Settlements Department - Central Bank of Libya
• To: Director of Legal Administration Department - Central Bank of Libya
• To: Director of Banking Operations Department - Central Bank of Libya
• To: General Manager of Ma'amalat Financial Services Company
• To: Deputy Director of Banking and Currency Supervision Department
• To: Deputy Director of Banking and Currency Supervision Department for Office Supervision Affairs - Transition Square
• To: Deputy Director of Banking and Currency Supervision Department for Field Supervision Affairs - Accounts & Projects
• To: Deputy Director of Banking and Currency Supervision Department for Islamic Banking Affairs
• To: Chairmen of Compliance Units at Banks
• To: Banking Supervision - Bandai
• To: Banking Service Quality Assurance Department
• Archive 2023

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