Circular No. 11/2025 Regarding Amendments to Capital Requirements for Banks

Central Bank of Libya
P.O. Box 1103
Telegraphic Address: Bank of Libya - Tripoli - Libya

Circular No. (2025/11)
Date: 9 Shawwal 1446 AH
Corresponding to: 08 April 2025

To: General Managers of Banks
Greetings,

Subject: Amendment of the Mandatory Cash Reserve Ratio against Deposit Liabilities

Based on the provisions of Article (57) of Law No. (1) of 2005 concerning Banks and its amendments, which stipulate that all commercial banks must maintain a mandatory cash reserve with the Central Bank of Libya against their deposit liabilities, payable in Libyan Dinars, and that the Board of Directors of the Central Bank of Libya determines the types of deposit liabilities and the mandatory cash reserve ratio for each.

Referring to Circular No. (2008/8) dated 22/05/2008, concerning the amendment of the mandatory cash reserve ratio on deposit liabilities for commercial banks, setting it at (20%) twenty percent of all deposit liabilities subject to this ratio.

We inform you that the Board of Directors of the Central Bank of Libya, in its third meeting of 2025, held on 26/03/2025, issued Decision No. (20) of 2025, concerning the amendment of the mandatory cash reserve ratio for deposit liabilities for commercial banks subject to this ratio. Article One thereof states as follows:

The mandatory cash reserve ratio that commercial banks should maintain with the Central Bank of Libya against their deposit liabilities, in application of the provisions of Articles (57), (58), and (59) of the Banks Law, is amended to be (30%) thirty percent of the total deposit liabilities subject to this ratio.

And as we enclose a copy of the aforementioned Board of Directors decision of the Central Bank of Libya, you are requested to adhere to and implement it in accordance with the provisions of Article (57), paragraph three, of Law No. (1) of 2005 concerning Banks and its amendments.

Peace, mercy, and blessings of God be upon you,

Abdulmajid Al-Maqouri
Director of Banking and Currency Supervision Department

Copies to:
Mr. / The Governor
Mr. / The Deputy Governor
Mr. / Director of the Office of the President of the Court of Audit Mr. / Director of Accounts Department, Central Bank of Libya Mr. / Director of Legal Department, Central Bank of Libya Mr. / Director of Banking Operations Department, Central Bank of Libya Mr. / Director of Internal Audit Department, Central Bank of Libya Mr. / Director of Information Technology Department, Central Bank of Libya Mr. / Director of Research and Statistics Department, Central Bank of Libya Mr. / Director of Inspection Unit, Central Bank of Libya Mr. / Banking and Currency Supervision Department Office Mr. / Banking and Currency Supervision Department Office for Administrative Affairs and Compliance Follow-up Mr. / Director of Banking and Currency Supervision Department for Banking Affairs - Benghazi Mr. / Director of Banking and Currency Supervision Department - Inspection Affairs Mr. / Banking and Currency Supervision Department Office for Islamic Banking Affairs Mr. / Banking and Currency Supervision Department Archive Secretary / 08 April 2025

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Central Bank of Libya
Banking and Currency Supervision Department
Date: 07-04-2025
Received: 191

Date: 06 April 2025
Reference: 2025/25

Respected Sir / Director of Banking and Currency Supervision Department, Greetings,

We forward to you herewith this letter, the decision of the Board of Directors of the Central Bank of Libya No. (19) of 2025, concerning the amendment of the mandatory cash reserve ratio on deposit liabilities for commercial banks, which was adopted in its third meeting of 2025, held on 26/03/2025.

At the same time that we place the aforementioned decision before you, we hope you will kindly take the necessary measures in this regard to put it into effect.

Please accept our highest appreciation and respect.

Peace be upon you,

Abdulbasit Osman Al-Senussi
Secretary of the Board of Directors

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Central Bank of Libya
P.O. Box 1103
Telegraphic Address: Bank of Libya - Tripoli - Libya

Decision of the Board of Directors of the Central Bank of Libya No. (20) of 2025 Concerning the Amendment of the Mandatory Cash Reserve Ratio on Deposit Liabilities for Commercial Banks

Board of Directors of the Central Bank of Libya

Having reviewed Law No. (1) of 1373 A.H. (2005) concerning Banks, amended by Law No. (46) of 2012.
And having reviewed the decision of the House of Representatives No. (10) of 2024, concerning the appointment of the Governor and Deputy Governor of the Central Bank of Libya. And having reviewed the decision of the Presidency Council of the House of Representatives No. (17) of 2024, concerning the appointment of members of the Board of Directors of the Central Bank of Libya. And having reviewed the memo presented by Mr. / The Governor, concerning the study and evaluation of the financial and economic situation, dated 25/03/2025. And having reviewed what the Board of Directors of the Central Bank of Libya concluded in its third meeting of 2025, held on 26/03/2025.

Decided:

Article One
The mandatory cash reserve ratio that commercial banks should maintain with the Central Bank of Libya against their deposit liabilities, in accordance with the provisions of Articles (57), (58), and (59) of the Banks Law, is amended to be (30%) thirty percent of the total deposit liabilities subject to this ratio.

Article Two
This decision shall be effective from the date of its issuance, and the Banking and Currency Supervision Department shall take the necessary measures to put it into effect.

Naji Muhammad Issa
Governor
Chairman of the Board of Directors

Issued on 26/03/2025

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