FSVC implemented a series of technical assistance activities in Libya from 2008-2011 and in 2013 with support from the U.S. Department of State’s Middle East Partnership Initiative (MEPI). Activities focused on building the bank supervision capacity of the Central Bank of Libya, and the capacity of banks and non-bank financial institutions in the areas of corporate governance, risk management, and lending to small and medium-sized enterprises (SMEs).
From 2008 to 2011, FSVC’s helped build the capacity of the Central Bank of Libya in examining the IT and internal controls of banks; trainings commercial banks in how to build modern risk management departments; and guiding the Libyan Stock Market through international best practices in broker regulation and conduct.
FSVC resumed activities in Libya in 2013. For decades, the Gaddafi regime’s doctrine annihilated private sector initiatives. As a result, Libya had ineffective financial institutions, an unfriendly regulatory framework and lacked funding mechanisms to promote private sector growth. To begin addressing these challenges, FSVC:
- Helped a private bank set up an SME business unit and trained commercial banks and the Central Bank of Libya in international best practices in corporate governance and risk management.
- Assisted the Libyan Stock Market in improving its corporate governance and market surveillance, to build trust among potential investors.
- Guided Libya Enterprise’s business centers and incubators on how to design an efficient service platform for startups and early-stage enterprises, and develop tools to turn these firms into viable businesses.
- Conducted an assessment to identify issues affecting access to capital for entrepreneurs and SMEs in Libya, and shared its findings with local representatives of the financial sector.
- Increased capacity of Central Bank of Libya to supervise banks, including on-site examinations.
- Detailed assessment that helped to identify specific obstacles preventing greater access to capital for SMEs and entrepreneurs, and important structural threats to private-sector development.
- A private bank obtained tailored advice on how to set up its SME lending unit, and develop a leasing product for its SME clients.
- Business centers and incubators from across Libya were provided practical recommendations in how to provide effective services to entrepreneurs and promote entrepreneurship.
- The Libyan Stock Market was able to design improved corporate governance and market surveillance procedures and guidelines, to avoid fraud and market manipulation.
- Staff of five commercial banks were trained in international best practices in risk management, to help increase lending to the private sector.