Regulatory Alerts2024-06-24
Central Bank of Libya Circular 11/2024 on Internal Capital Adequacy Assessment Process (ICAAP)
The Central Bank of Libya issued Circular 11/2024 to mandate a comprehensive Internal Capital Adequacy Assessment Process (ICAAP) for all licensed banks and financial institutions. The Circular requires regulated entities to systematically identify, measure, and monitor material risks while maintaining capital buffers that exceed regulatory minimums under both normal and stressed conditions. It establishes clear governance responsibilities, stress testing protocols, reporting standards, and supervisory compliance timelines to ensure long-term financial stability and alignment with international best practices.
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