Interpreting Middle East Economic News and Analyzing Market Trends

Category: Libya

Islamic Banking in Libya: putting the cart before the horse

Even before the fall of Gadhafi, Libyan rebels were busy launching a central bank.  Never before in the history of revolutions have rebels setup a central bank before gaining control of the government.  This is strange enough in its own right and brings up many questions, but that’s another story.

 

One of the first items on the agenda for Libya’s new government was to convert all banks in the country into Islamic banks.  The main problem with this decision is that the government failed to come up with Islamic bankinh regulations before putting this law forward.  Now banks are stuck in limbo trying to figure out their way through this.

 

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