Periodic Letter (105/2013) - Follow-up on Preparation for Transition to Islamic Banking

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

Reference: I.R.M.N. 1055/11 Periodic Letter (I.R.M.N. 105/2013) Date: 16 Rajab 1434 AH Corresponding to: 26 May 2013 AD

To: Chairmen of Bank Boards of Directors To: General Managers of Banks To: Chairmen of Temporary Administrative Committees in Banks

Greetings,

Subject: Follow-up on Preparation for the Transition to Islamic Banking

In the context of the supervisory and regulatory role of the Central Bank of Libya, implementing the provisions of the amended Banking Law No. (46) of 2013 AD, and its instructions issued regarding the regulation of Islamic banking activities in Libya.

With reference to the letter from the Deputy Governor dated 2 January 2013 AD, regarding the follow-up of the project for the transition to Islamic banking, and the upcoming transition requirements for banks, whether fully or partially, and the formation of working teams from employees of relevant departments specialized in the transition, they are assigned the following tasks:

1. Communicate with the Islamic Banking Affairs Advisory Committee at the Central Bank of Libya, and cooperate with it technically in this field.
2. Participate in activities, training programs, and technical meetings related to the transition.
3. Work on preparing the bank's transition strategy, including training plans and technical and technological processing programs, and submit it to the General Administration for presentation to the Boards of Directors for approval.

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4. Supervise the transition process and address its consequences, and meet the transition requirements specific to each bank.
5. Any other tasks assigned by the General Administration of the Bank.

With reference to the letter from the Governor of the Central Bank of Libya addressed to the Chairmen of Boards of Directors of Commercial Banks dated 6 May 2013 AD, which referred to Law No. (1) of 2013 AD regarding the abolition of interest-based dealings, and requested its implementation, in addition to emphasizing the necessity for banks to comply with the points contained in the aforementioned letter from the Deputy Governor, and the importance of providing adequate support to transition teams within the scope of their assigned tasks, and adhering to providing the Banking and Currency Supervision Department with a detailed report on what has been accomplished in their transition files, with a maximum deadline of the end of May of this year, including comprehensive information about the transition teams, their members, and the work they have completed.

For importance, we hope for compliance with taking the necessary measures regarding this matter, and the necessity of providing this Administration with the required report within the period specified in the aforementioned letter from the Governor.

... And peace, mercy, and blessings of God be upon you ...

Abdulmajid Muhammad Al-Maqouri Director of Banking and Currency Supervision Department / Acting

• To the Governor
• To the Deputy Governor
• To the Chairman of the Islamic Banking Affairs Advisory Committee
• To the Islamic Banking Department

On 26 May 2013 AD - Abdulmajid.

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