Following the popular uprising in Libya of 2011, it is still
premature for the relevant regulators to consider the overhaul
of the financial services industry in Libya, including Islamic
finance, the regulation of foreign banks and stock
The current Banking Law No 1 for 2005 and the Stock Exchange
Law No 11 for 2010 are still in force and shall regulate all
banking and securities activities at present until being
amended. It is therefore too early to comment on the proposed
regulation of Islamic financial services, foreign licenses or
specific banking models.
As Libya makes the transition to a new government, Libyan
banks have limited the amount of cash that any individual or
entity may withdraw from the market. This has led the Libyan
Stock Exchange (LSE) to suspend its operations due to cash
problems within local banks, plus the need to connect fiber
optics between Tripoli and Benghazi.