Regulatory Alerts2023-09-21
Central Bank of Libya Circular 09/2023 on Financial Position and Statement of Revenues and Expenses for Islamic Banks
The Central Bank of Libya issued Circular 09/2023 to mandate commercial banks and Islamic banking windows to submit monthly financial position and revenue/expense statements in accordance with IFSB standards and Basel instructions. The circular requires licensed financial institutions to provide standardized data using attached forms within fifteen days of the subsequent month, ensuring consistent reporting across all branches. This directive aligns domestic Islamic banking operations with established Sharia-compliant frameworks and enhances regulatory oversight of alternative banking products.
Central Bank of Libya P.O. Box 1103 | Telex Address: MasrafLibya - Tripoli - Libya
Reference No.: A.R.M.N. 804 Circular No. (2023/09) Date: 14 Rajab 1444 AH. Corresponding to: 05 February 2023
To: Chairmen of the Boards of Commercial Banks To: General Managers of Commercial Banks
Subject: Financial Position and Statement of Revenues and Expenses for Islamic Banks
Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and in accordance with the standards issued by the Islamic Financial Services Board (IFSB) regarding the application of best practices for Islamic banking operations. With reference to Circular A.R.M. No. (2010/9) dated 2010/06/16, concerning the controls and foundations of Sharia-compliant alternative banking products and Sharia rulings in Libyan commercial banks, specifically its fourth paragraph (Information and data required to be submitted to the Central Bank of Libya), which includes the unified financial position for all bank branches and Islamic windows, and the unified income statement for all branches or Islamic windows of the bank, according to Forms (1) and (2) attached to the Circular. And in accordance with Standard No. (9) governing financial statements for Islamic banks. In the context of the Central Bank of Libya issuing a series of instructions on how to calculate and review various banking products according to the established standards. Therefore, you are requested to submit monthly data and statistics regarding the financial position and statement of revenues and expenses, according to the attached forms (Financial Position Form - and Statement of Revenues and Expenses), within a period not exceeding fifteen days from the following month.
Peace be upon you, Naji Mohammed Eissa Director of the Banking and Currency Supervision Department
Copies to: Mr. / The Governor Mr. / Deputy Director of the Banking and Currency Supervision Department Mr. / Deputy Director of the Banking and Currency Supervision Department for Office Supervision and Compliance Monitoring Mr. / Deputy Director of the Banking and Currency Supervision Department for Inspection Affairs Mr. / Deputy Director of the Banking and Currency Supervision Department for Islamic Banking Affairs Messrs. / Banking Supervision, Benghazi Messrs. / Heads of Compliance Departments at Banks (for follow-up) Messrs. / Heads of Risk Management Departments at Banks
Basel Instructions Phone: +218 21 333 3591, Fax: +218 21 444 1488, www.cbl.gov.ly, swift code: CBLJLYLX