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Exclusive.. Central Bank Instructs Commercial Banks to Take All Necessary Measures to Postpone Deduction of Any Installments from Bank Customers During the Current Month of May

Our source has exclusively obtained a correspondence from the Central Bank of Libya regarding its instruction to banks to take all necessary measures to postpone the deduction of any installments related to obligations on bank customers during the current month of May.

This includes salaries and the wife and children’s grant, in line with the Central Bank of Libya’s direction to support citizens across all segments.

Exclusive.. Central Bank Extends Official Working Hours at Bank Branches and Calls for Increasing Service Windows and Sufficient Number of Tellers at Branches and Agencies

Our source has exclusively obtained a circular from the Central Bank of Libya, in which it announced the extension of official working hours at bank branches on the occasion of the upcoming Eid al-Adha, until 5:00 PM, starting from May 25, 2025, until June 15.

According to the Central Bank, Friday, May 30, and Saturday, May 31 will be regular working days for the current accounts and treasury departments.

The Central Bank also called for increasing the number of service windows and ensuring a sufficient number of tellers at branches and agencies, in order to give bank customers adequate opportunity to withdraw cash, and to continuously supply ATMs with the required cash across all regions of the country.

The Central Bank emphasized the need to ensure cash availability at all times to meet the basic needs of bank customers and to alleviate the burden on citizens.

Exclusive: Central Bank Circulates Instructions to Banks on Reducing POS Commission to 0.5%

Our source has exclusively obtained a circular from the Central Bank of Libya in which it instructed banks to reduce the commission rate on Point of Sale (P.O.S) transactions.

The commission shall be set at a maximum of 0.5%, to be deducted from the merchant, starting from May 25, 2025, until June 15, and will be free of charge for the cardholder.

Several Commercial Banks Announce Partial Civil Disobedience in Protest Against Security Breakdown and Lack of Protection

Following recent events in the country, Wahda Bank announced it will enter into partial civil disobedience starting Saturday, May 17, 2025. The decision includes the full closure of all branches located in areas classified as unsafe and the suspension of all in-person banking services in these affected areas until further notice. The bank will continue offering digital banking services as much as possible to ensure essential transactions for citizens without compromising employee safety.

According to the bank, this decision was made out of necessity and concern for the lives of its employees and the safety of its institutions, after the failure of the relevant authorities to provide the required protection, despite repeated warnings and official communications.

The bank held the official authorities fully legally and morally responsible for the daily risks and threats facing the banking sector. It also reaffirmed that the bank will not compromise the safety of its staff or depositors’ funds amidst the ongoing security breakdown.

In a related development, Mediterranean Bank also issued a statement announcing an immediate entry into partial civil disobedience, including the closure of branches in unstable security zones and the limitation of services to remote digital channels to fulfill urgent customer needs. The bank issued an urgent call for responsible authorities to fulfill their legal and ethical duties in protecting institutions and citizens. It stressed that this decision is not aimed against the state or the people, but rather a warning cry and a clear rejection of the suspicious silence surrounding the current situation.

Likewise, Bank of Commerce and Development declared partial civil disobedience to protect the safety of employees and clients amid deteriorating security conditions in several areas and the increasing frequency of assaults and violations targeting workers in national institutions, including the banking sector.

The bank emphasized that this decision does not reflect an abandonment of its responsibilities, but stems from its commitment to the safety of its staff and the public, amidst a clear absence of state protection for sovereign institutions. It called on all official entities to assume their responsibilities and fulfill their legal duty in protecting banks, considering them a pillar of the state’s stability and financial security.

Exclusive: Including a Maximum 7% Expansion in the Financing and Investment Portfolio – Central Bank Issues Key Instructions to Banks

Our source has exclusively obtained circulars from the Central Bank of Libya addressed to banks, aimed at ensuring the stability and strengthening the resilience of the banking sector, particularly in terms of influencing the volume, type, and duration of credit and financing, in a way that meets the actual needs of economic activity in production and services.

The instructions state that the maximum allowable expansion in the size of the credit portfolio – the financing and investment portfolio – for the financial year 2025 shall not exceed 7% of the bank’s existing portfolio balance. Furthermore, banks must adhere to the instructions when granting credit and financing, which must be based on a thorough study of the client and the associated risks, and must include all the requirements stipulated by the Central Bank of Libya.

It is also necessary to review, update, and develop credit/financing and investment policies, as well as related risk management policies, to keep pace with market changes and economic conditions. These policies must at least meet the minimum requirements set by the Central Bank of Libya.

Banks must also manage the credit/financing and investment portfolio in a way that reduces the ratio of non-performing loans and limits individual and sectoral concentration. The portfolio should be diversified by setting limits to address concentration risks across various levels and activities.

Periodic review and updating of standards and conditions related to granting credit and financing must be conducted whenever necessary, in order to avoid any future risks to the banks.

In addition, efforts must be made to train and qualify staff in managing credit/financing and investment portfolios, and in applying best practices in risk management, by enrolling them in certified and specialized training programs to enhance their competencies.

Shnibish Writes: “Seasonal Greed and Electronic Services Security: Between Transaction Growth and Protection Assurance”

Written by Anas Shnibish: “Seasonal Greed and Electronic Services Security: Between Transaction Growth and Protection Assurance”

With the increasing reliance on electronic services in various aspects of life, digital security has become a top priority. At the same time, the concept of “seasonal greed” emerges, referring to peak periods in the use of these services, such as seasonal promotions, holidays, major discounts, and annual events. During these times, user activity surges, posing significant cybersecurity challenges.

The question here is: What role do banks, service providers, and customers play in enhancing the security of electronic services, especially during peak seasons?

The Role of Banks in Electronic Security

Banks are responsible for securing digital financial transactions, protecting customer data, and preventing fraud. Their role includes:

  • Enhancing security systems: Utilizing strong encryption, firewalls, and fraud detection systems to monitor suspicious activities.
  • Providing two-factor authentication (2FA): Requiring an additional verification code when logging in or making payments.
  • Monitoring transactions and detecting fraud: Using artificial intelligence to analyze financial operations and identify any unusual activities.
  • Launching awareness campaigns: Sending alerts and warning messages about cyber fraud methods such as phishing and fake websites.
  • Offering secure payment tools: Including virtual cards and tokenization technology to prevent the theft of original card data.

The Role of Electronic Service Providers

Electronic service providers include e-commerce platforms, payment processors, internet service providers, and fintech companies. Their responsibilities include:

  • Implementing strong security protocols: Such as HTTPS protocol, advanced encryption (SSL/TLS), and intrusion detection/prevention systems (IDS/IPS) to protect user data.
  • Ensuring system stability during peak periods: By optimizing server performance and utilizing cloud computing technologies to prevent downtime and security breaches.
  • Conducting regular security audits: To detect and fix vulnerabilities in websites and applications.
  • Protecting customer data: Through policies such as not storing sensitive payment information and encrypting user details.
  • Developing additional verification tools: Such as biometric authentication (fingerprint or facial recognition) to secure electronic transactions.

The Customer’s Role in Protecting Their Data and Funds

Despite the significant efforts of banks and service providers, the customer remains the weakest link if they do not follow essential security measures. Their responsibilities include:

  • Not sharing sensitive information: Such as passwords, bank card details, or verification codes with any unauthorized entity.
  • Purchasing only from trusted websites: Ensuring they use HTTPS protocol and have clear data protection policies before entering payment details.
  • Enabling two-factor authentication (2FA) on financial and electronic accounts.
  • Regularly updating passwords: Using strong, unique passwords for different accounts.
  • Reviewing banking transactions regularly: And immediately reporting any unknown transactions.
  • Avoiding clicking on suspicious links: Sent via email or text messages, as they may be phishing attempts.

Conclusion

Ensuring the security of electronic services requires joint cooperation between banks, service providers, and customers. While banks work on securing financial transactions, service providers must offer a safe electronic infrastructure, and customers must follow basic protection measures to avoid falling victim to cyber fraud. In the end, cybersecurity is a shared responsibility, and any weakness in one party can lead to risks that threaten everyone.

Al-Zantouti Writes: “Our Commercial Banks, Their Mysterious Identity, and Their Lost Role in the National Economy”

Financial expert Khaled Al-Zantouti has written an article titled Our Commercial Banks, Their Mysterious Identity, and Their Lost Role in the National Economy.

He reiterates the crucial role of commercial banks in driving economic growth and establishing sustainable development to build a strong national economy. Without delving into theoretical concepts, it is widely understood that commercial banks serve as repositories for public and private sector savings, converting them into investment channels through credit facilities that support sustainable economic development by financing individuals and businesses.

However, in Libya’s current situation, most commercial banks neither engage in proper credit operations nor structure them effectively. When credit does exist, it remains extremely limited, such as Islamic banks offering vehicle leasing (Ijara) or certain commercial banks providing temporary, unregulated credit coverage for traders. These activities often do not align with recognized credit matrices.

Al-Zantouti argues that no economic restructuring can be envisioned without an active banking sector facilitating directed credit for sustainable development, economic diversification, and GDP growth. The core issue, he asserts, is the lack of a clear and practical identity for both public and private banks. While their legal frameworks may define their roles, subsequent laws have rendered these regulations ineffective.

He calls on the new administration of the Central Bank of Libya to establish a clear identity for commercial banks: Are they Islamic, conventional, or a hybrid of both? He also raises the question of whether the interest rate prohibition law can be openly discussed or if it remains untouchable. Citing global legal perspectives, including the American legal system, he highlights that usury is prohibited worldwide, but its definition varies—even among Islamic scholars.

For instance, U.S. law explicitly bans usury, defining it as interest rates that significantly exceed market rates. If the current 10-year U.S. Treasury bond yield is 4.5%, a loan granted at 13.5% or higher would be considered usurious and illegal. This example underscores the need for a well-defined understanding of riba (usury) rather than a broad prohibition that lacks practical financial mechanisms.

Al-Zantouti emphasizes that Islam is a religion of modernity and adaptability, urging scholars and economists to engage in open, rational discussions to reach shared conclusions that respect Islamic principles while addressing contemporary financial realities. He asserts that banks must first define their identity—whether conventional, Islamic, or mixed—and subsequently develop appropriate financial regulations. Otherwise, Libyan banks will remain mere “salary shops” reliant on commissions and deductions at the expense of ordinary citizens.

He concludes with a thought-provoking remark: “Even near the sacred city of Mecca, both conventional and Islamic banks operate—so why not in Tripoli’s Red Castle?

Exclusive: National Commercial Bank Raises Withdrawal Limit and Transfers 140 Million to Commercial Banks on Orders from its General Manager

Our source at the National Commercial Bank revealed: “When leadership is under wise and youthful management, the results are more progress, more success, and ever-evolving capabilities.”

The source stated that, under the directives of the General Manager of the National Commercial Bank, Ali Al-Khuwailidi, branches and agencies of the bank have been instructed to increase the cash withdrawal limit via teller checks or ATMs to 3,000 dinars. Additionally, the General Manager issued instructions to the Issuance Department and the Green Mountain Region Branch Administration to send cash liquidity to partner banks, including Jumhouria, Sahara, and North Africa Banks, among others. A total of over 140 million dinars has been transferred, including cash shipments to partner banks in southern Libya via aircraft from Al Abraq International Airport.

The source expressed gratitude and appreciation to the General Manager, Ali Al-Khuwailidi, the Issuance Department in Green Mountain, and the Green Mountain Region Branch Administration for their efforts in ensuring cash availability and smooth transfers.

Exclusive: Central Bank Directs Banks to Accept International Cards on Local POS with a 2.5% Fee Cap

Our source has exclusively obtained a directive from the Central Bank of Libya to commercial banks regarding the resumption of accepting international payment cards on local point-of-sale (POS) terminals owned by Libyan banks.

This decision aligns with the regulations outlined in Circular No. (2024/17), with a strict requirement that transaction fees do not exceed 2.5%.

Exclusive: Financial Official Explains Ministry’s Requirement for Employees to Have Bank Cards for Salary Payments

A financial official told our source that the Ministry of Finance’s directive requires employees to provide proof of owning a bank card as a mandatory condition for salary disbursement.

He stated, “The directive means that any state employee with a bank account must obtain and activate a bank card and provide its details to their workplace. This ensures that when their salary is transferred, it is immediately available in their account, allowing them to withdraw, make purchases, and use electronic payment services instead of relying on checkbooks.”

Exclusive: Central Bank Directs Banks to Open the Foreign Exchange System on January 5 – Here’s What Was Requested

Our source has exclusively obtained a circular from the Central Bank of Libya addressed to commercial banks, instructing them to begin accepting foreign exchange coverage requests through its system starting January 5 for various purposes.

The directive emphasized the need for banks to prepare their systems and get ready to accept requests from clients, including individuals, companies, and entities, for all purposes.

Withdrawing Money from Libyan Banks: A Challenging Path as Al-Monitor Highlights Financial System Collapse

Published by: Al-Monitor on Wednesday

Libya’s financial crisis has forced many citizens to rely on payment cards amid the collapse of the financial system, following over a decade of instability and war. According to Al-Monitor, cash withdrawals have become an arduous process, with long queues of hundreds of people waiting outside heavily guarded banks. Often, cash reserves run out early due to severe liquidity shortages.

Lack of Trust in the Banking System

The report highlights that mistrust in the financial system has led Libyans to hoard cash rather than depositing it into banks. Currently, banks limit withdrawals to 1,000 Libyan dinars (approximately $206) per transaction. This mistrust exacerbates delays in the payment of salaries to government employees, who make up the majority of Libya’s workforce.

Transition to Digital Payments

In cities like Misrata, a significant coastal and commercial hub, the population of 400,000 is increasingly turning to bank cards. However, this shift is not without hurdles. The scarcity of ATMs and the lack of card payment acceptance among vendors pose challenges to a cashless economy.

A Misrata resident mentioned that using payment cards has simplified shopping, reducing the need to carry large sums of cash.

A Divided Central Bank

Political turmoil has further fragmented Libya’s financial institutions. Since 2014, competing factions have printed multiple versions of 50-dinar banknotes. To combat counterfeit currency, the Central Bank of Libya announced the withdrawal of these notes in April, initially setting a deadline of August but later extending it to the end of the year.

The withdrawal of these notes has added another layer of complexity. Musab Al-Haddar, a 45-year-old teacher, expressed frustration over shops refusing the old 50-dinar bills.

Addressing the Crisis

To alleviate the current crisis, the Central Bank of Libya injected 15 billion dinars into the economy in late October and urged banks to expedite the issuance of payment cards. However, achieving a seamless transition toward digital transactions requires addressing systemic challenges, such as increasing ATM availability and equipping vendors with card payment devices.

Exclusive: The Central Bank Issues Regulations to Facilitate Salary Disbursement Before Reaching Banks – Details Below

Our source has obtained a circular issued by the Central Bank of Libya to commercial banks regarding regulations for setting purchase limits based on individual salaries. The goal is to facilitate salary disbursement before funds are deposited into banks and to promote electronic payments.

The regulations stipulate that banks must establish purchase limits through electronic payment services they offer, such as electronic cards or mobile applications.

The limit granted to customers is considered a form of Qard Hasan (interest-free loan) and is subject to all its rules, terms, and Sharia-compliant regulations. Key conditions include:

  • No commissions, whether fixed or percentage-based, are to be charged on the overdraft amount.
  • Customers must not be required to subscribe to additional services to receive the limit.

The service is to be offered upon customer request through bank-specific mobile applications, SMS services, or signed forms that outline all product terms and conditions, approved by the bank’s Sharia supervisory board.

Each bank is required to establish policies and regulations for the service, including identifying target beneficiaries, service terms, and the procedures needed to safeguard the rights of both the bank and its customers. Banks may impose conditions for eligibility, restrict usage cases, set specific loan ceilings, or link the limit to the salary value, provided these conditions do not conflict with the bank’s financial policies or legal regulations.

The service is available to bank customers with active current accounts who have been receiving regular salary deposits for at least six months.

The granted limit must not exceed 60% of the net salary after deducting any installments or obligations. The used amount is automatically deducted from the limit when the salary is deposited, and the limit is renewed automatically unless either party decides otherwise.

The bank’s board of directors and Sharia supervisory board must approve the policies, product guidelines, terms, and models, ensuring compliance with regulations issued by the Central Bank of Libya.

Banks are also authorized to take all necessary technical and legal measures to recover their dues in cases where customers fail to prove insolvency. Additionally, banks may refuse to provide a Qard Hasan to clients with a history of defaults or other issues, as determined by approved policies and regulations to mitigate risks.

In light of this, the Central Bank has urged commercial banks to launch the product and prepare their systems to enable the use of these limits for electronic payment transactions in compliance with the aforementioned terms and regulations.

Exclusive: Central Bank Sends 15 Million LYD to Kufra – Allocation Details

The Central Bank of Libya revealed in an exclusive statement to our source that it has dispatched 15 million LYD in cash to the southeastern city of Kufra.

The allocation includes 7 million LYD designated for branches of Wahda Bank, 4 million LYD for the safes of North Africa Bank branches, and 4 million LYD for Jumhouria Bank.

This transfer was made under the directives of Central Bank Governor Naji Issa and his deputy. The shipment has just departed from Tripoli.

Mohammed Abu Snina: Analyzing Key Financial Indicators of Banks for Q3 2024

Economic expert Mohammed Abu Snina wrote an article in which he stated:

“Some pages on social media have circulated the information regarding the increase in the profits of commercial banks combined, during the current year until the end of the third quarter of the 2024 fiscal year. These profits reached 1.639 billion dinars, compared to 668.0 million dinars at the end of the third quarter of 2023, marking an increase of 145.4%.

The financial and objective assessment of this indicator, in order to judge the soundness of the banks’ performance, requires consideration of other related indicators. The most important of these indicators is the extent to which commercial banks have maintained sufficient provisions to cover doubtful debts, and the adequacy of these provisions. In other words, the size of the provisions gap as shown in the consolidated financial position of the commercial banks.”

The report indicates that the coverage ratio of provisions for doubtful debts to total non-performing loans stood at 58.6% at the end of the third quarter of 2024. This means that the provisions gap amounts to 41.4%. It would have been better if the banks had allocated a larger portion of their income to form more provisions to strengthen their financial position and reduce the gap. However, the banks preferred to announce large profits at the expense of forming adequate provisions to cover their non-performing debts, despite the fact that non-performing loans still exceed 20% of the total credit portfolio.

Another important indicator when evaluating the profits achieved by the banks is the source of income that led to these profits. Banks generally focus on increasing income derived from their core business, which mainly consists of the loans and facilities they provide within their primary role of financial intermediation—using deposits for financing and creating credit. In this regard, the report indicates that income-generating assets are low, accounting for less than 20% of total assets, which reflects the weakness or low utilization of funds by commercial banks.

Another notable observation is the increase in the balance of overdraft accounts with correspondent banks (abroad), which are accounts denominated in foreign currency. The report shows that the overdraft balance increased from the equivalent of 181.2 million dinars at the end of the third quarter of 2023 to the equivalent of 763.5 million dinars, an increase of 421.4% by the end of the third quarter of 2024. The report attributes this relatively large overdraft balance to the delay in settling accounts with correspondent banks, exposing them to interest payments that will reduce their expected profits by the end of the fiscal year, in addition to the risks associated with the rising exchange rate of the US dollar.

In conclusion, the profits announced at the end of the third quarter of 2024 should be viewed with caution, as they came at the expense of obligations that banks should not have ignored. Furthermore, most of these profits are a result of fees and commissions imposed by banks on their customers, rather than from financing activities related to their core operations.