Circular 15/2025

Circular 15/2025

The Central Bank of Libya, pursuant to:

• Article 16 of Law No. (1) of 2005 regarding the Central Bank of Libya and the organization of banking business;
• Article 9 of Decision No. (9) of 2024 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 13 of Decision No. (13) of 2025 regarding the approval of the internal regulations of the Central Bank of Libya;
• Article 22 of Decision No. (22) of 2024 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 4 of Decision No. (4) of 2021 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 19 of Decision No. (19) of 2024 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 3 of Decision No. (3) of 2018 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 18 of Decision No. (18) of 2018 regarding the approval of the organizational structure of the Central Bank of Libya;
• Article 12 of Decision No. (12) of 2018 regarding the approval of the organizational structure of the Central Bank of Libya;

And in exercise of its powers granted by the aforementioned laws and decisions, and after reviewing the recommendations of the relevant committees and departments within the Central Bank of Libya, and in light of the need to enhance the liquidity position of banks and financial institutions and ensure their stability, has issued the following circular:

Article 1: Definitions
For the purposes of this circular, the words and expressions appearing herein shall have the meanings set forth below unless the context otherwise requires:

1. "The Bank": Any bank or financial institution licensed by the Central Bank of Libya to conduct banking business.
2. "Liquid Assets": Cash, balances with the Central Bank of Libya, and other assets that can be readily converted into cash with minimal risk of loss of value or principal.
3. "Total Liabilities": The sum of all liabilities of the Bank, including deposits, borrowings, and other financial obligations.
4. "Liquidity Ratio": The ratio of Liquid Assets to Total Liabilities, expressed as a percentage.

Article 2: Minimum Liquidity Ratio
Every Bank shall maintain a minimum liquidity ratio of not less than 5.5% at all times. This ratio is calculated by dividing the total value of Liquid Assets by the total value of Total Liabilities.

Article 3: Reporting and Compliance

1. Every Bank shall submit to the Central Bank of Libya, on a monthly basis, a report detailing its Liquid Assets and Total Liabilities, along with the calculated Liquidity Ratio.
2. The Central Bank of Libya reserves the right to conduct inspections and audits to verify the accuracy of the reported figures and the Bank's compliance with this circular.
3. Any Bank failing to maintain the minimum liquidity ratio specified in Article 2 shall be subject to the regulatory measures and penalties stipulated in the applicable laws and regulations.

Article 4: Effective Date
This circular shall take effect from the date of its issuance.

Issued in Tripoli, on [Date]

The Governor
Central Bank of Libya

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