Result Based Management Framework - METAC

53
VI. LIBYA
A. Banking Supervision
Past Activities
IMF was the main provider of TA in banking supervision to the Central Bank of Libya
(CBL). This was done through appointing MCM resident advisors in banking supervision
at the CBL. On the other hand, METAC played a main role in providing TA to CBL, in
coordination with the MCM advisors. The TA provided by METAC covered the
following areas:
Developing a medium-term plan to enhance banking supervision and align it with
Basel core principles.
Assisting the Banking Supervision Department (BSD) at the CBL in upgrading
the regulatory framework through drafting new banking regulations on key topics:
credit risk management, credit concentration limits, loan classification and loan
impairment and provisioning, liquidity ratios and liquidity risk management, and
foreign exchange operations and limits.
Developing a new risk-focused onsite inspection manual and training the onsite
supervisors on applying it.
Reviewing and upgrading the supervisory reporting system.
Delivering some capacity building activities (workshops, seminars) on the
implementation of the new regulations and on various risk-based supervisory tools
and techniques in both offsite and onsite supervision.
Despite the high level of TA delivered by METAC, the CBL still needs to exert major
efforts to enhance its banking supervision in both offsite and onsite functions.
Objectives
Work Program
The main objective of the METAC TA is to improve the supervisory and regulatory
frameworks at CBL and to enhance financial intermediation in the Libyan banking
system.