In accordance with its commitment to modern governance standards, the Central Bank of Libya (CBL) has taken a decisive step toward establishing sound management practices, fostering an effective regulatory framework, safeguarding the interests of banking sector stakeholders, and building trust among clients.

Recognizing that governance has become a fundamental criterion emphasized by international regulatory bodies, including those outlined by the Basel Committee on Banking Supervision, the CBL Board of Directors has approved the Banking Sector Governance Manual. This manual has been disseminated to banks via Circular No. (19) 2024, issued by the Banking and Monetary Supervision Department.

The CBL underscores the importance of strict adherence to the manual’s provisions by all banks operating in Libya. The manual establishes the minimum principles and governance standards designed to elevate the operational efficiency, accountability, and transparency of the banking sector. Key components of the updated governance framework include:

Shareholders' Rights
Supervisory Authority
Board of Directors and Its Committees
Governance of Islamic Banking Operations
Information Technology Governance
Triple Bottom Line Sustainability
Disclosure and Transparency for Stakeholders

Under these guidelines, all banks are required to align their practices with the manual’s standards. A six-month transition period has been granted to ensure compliance, during which banks must adjust their governance frameworks and, where necessary, restructure their boards of directors in accordance with the expiration of members' terms.

To access the full Banking Sector Governance Manual, please Click here.