Al-Saiti calls on the Central Bank to stop its interference in the work of commercial banks

by times news cr

The‌ Audit Bureau called⁢ on the Central Bank to immediately stop any measures towards changing the boards of directors and executive departments of state-owned⁤ commercial banks.

In a letter to‍ the​ Governor of the Central Bank, Issa Naji, the Undersecretary of the Audit Bureau called for adherence to the ⁤correct law and governance ⁢systems and the separation between the role of the Central Bank of Libya as a⁣ controller and an owner.

The ​Bureau stressed the necessity ​of forming neutral general assemblies. Which does ‌not have any interests with commercial ‍banks; It should be composed of professionals who exercise accountability powers according to annual reports ⁣and objective performance indicators that ​contribute to raising banking performance.

The‍ Bureau indicated that the Central Bank uses broad powers that do not serve the state’s economic goals and confuse the work​ of the banking sector.

The Bureau explained that the change approach undertaken by the‌ Central Bank in the ​boards of directors of bank-owned commercial‍ banks and their executive departments is random‌ and unplanned.It violates the legal procedures that outlined the steps for change⁣ in accordance with the provisions of the law.

The Bureau also indicated that the Central Bank is interfering ‌with the work of the Board of Directors and violating its powers regarding changing general managers of banks and imposing general managers in an‌ uncontrolled manner, according to what he saeid.

The Bureau also pointed out that the Central Bank is moving towards changing the boards of directors before the end of the legal term for the boards of directors, and that the general assembly⁤ meetings‌ called for are unclear, their dates are not disciplined, the goals are not⁣ clear, ‌and they​ are not linked ⁤to the adoption of annual reports, according to him.

Source: Audit Bureau

What are the key concerns raised by the Audit Bureau regarding the Central Bank’s governance of state-owned commercial banks?

Interview ⁤with Financial Governance ​Expert: The Central Bank’s recent Actions Under Scrutiny

Editor: Thank⁣ you for joining us today to discuss the recent call from the Audit Bureau ⁢regarding the Central Bank’s approach⁢ to governing state-owned commercial banks. Can you summarize the key issues⁣ raised in their letter?

Expert: Absolutely, and thank⁢ you for having me. The Audit Bureau has raised significant concerns ⁢about ‍the Central Bank of Libya’s‌ handling ⁢of the boards of ​directors and executive departments in state-owned commercial banks. They are urging for an immediate halt to any measures aimed at changing these boards. The Bureau emphasizes the need for adherence to proper governance systems that ensure ‍separation between the Central Bank’s role as a regulatory​ body and its ownership stakes.

Editor: It sounds like governance and accountability are at the heart of this issue. What specific governance⁤ practices is the Audit Bureau recommending?

Expert: The Audit Bureau is advocating for the⁣ establishment of neutral general assemblies. They propose ⁢that⁢ these ⁣assemblies should be composed of professionals‍ who⁢ aren’t ‌stakeholders in the ⁣commercial banks. This structure aims to ensure unbiased accountability, where⁣ performance‍ evaluations are based on annual ⁤reports and objective indicators to enhance banking performance.

Editor: The letter also notes the⁤ concerns about the Central Bank’s powers. Can you ​elaborate on those?

Expert: Certainly. the Audit Bureau has highlighted that the Central bank is exercising broad⁣ powers that do not align‍ with state economic objectives, which contributes to confusion within the ⁣banking sector. They argue that changes being made to the executive leadership of these banks appear random and unplanned, deviating from established legal procedures meant to ⁢guide such changes.

Editor: That raises crucial points about the rule ‌of law and orderly governance. What implications might this have for the banking sector in ⁣Libya ⁤if these concerns aren’t addressed?

Expert: if the Central Bank’s⁣ interventions continue unchecked,it could substantially undermine⁢ the stability and predictability essential for the banking sector’s growth. ​Unplanned changes can lead to turmoil within these‌ institutions, ⁣potentially resulting in decreased investor confidence and ⁤a negative​ impact‍ on the broader⁢ economy.Clear governance structures ‌and adherence to the legal framework are vital for long-term sustainability.

Editor: The Bureau’s letter also​ mentions issues with general assembly meetings.What⁤ should be done to​ improve this ⁤aspect?

Expert: The meetings as currently conducted lack clarity in their goals and scheduling. for these assemblies to ​function effectively, they need to be regular, clear, and clearly linked to key outcomes like the adoption⁢ of annual reports. A systematic approach to these ‍gatherings can ensure ‌all ‍stakeholders are aligned and that decisions are made⁢ in⁣ the best interest of the banks and the public.

Editor: In your view, what practical advice can be offered to stakeholders in the banking industry ​amid these challenges?

Expert: Stakeholders should advocate for stronger governance practices and demand transparency from both the ​Central Bank and their respective boards. Engaging in dialog about the importance of professional ‌oversight can definitely help⁣ reinforce the‍ need for independent evaluations of bank⁢ performance. Furthermore,⁤ they should stay informed about the​ latest⁣ developments to be prepared for any potential​ changes.

Editor: ⁣Thank you for those insights. as the situation unfolds, what should readers be watching for?

Expert: people should keep an ⁢eye on upcoming announcements from the Audit Bureau and the Central Bank regarding governance policies and structure changes. Additionally, any moves towards more transparent and systematic assembly meetings will be a‌ positive ‍sign ⁢that the banking‍ sector is​ moving in the right​ direction. ‌

Editor: Thank you for ⁢sharing your expertise with us‍ today. This conversation‍ highlights crucial issues that need⁢ ongoing attention in⁣ Libya’s banking ‍sector.

Expert: Thank you ‌for having me. It’s important that⁣ we continue⁤ to advocate ⁢for sound ‌governance to promote a stable economic environment in Libya.

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