Shariah-compliant banking is a hot topic in Libya at the moment, but will making it compulsory hinder the development of the country?
According to a report from Bloomberg, the decision to ban non-Shariah-compliant banking by 2015 is strangling access to funds, with some commercial lenders already refusing to offer conventional loans due to a lack of clarity in the law.
It quotes a branch manager from Gumhouria Bank as saying:
“The lives of people are paralyzed ... That is why we urge the congress and the Central Bank to find ways to help customers to get loans and make prepayment more easier.”
At Libya Business News we want to know what effect the switch to Islamic banking is having on you, both personally and in your business. Will it ultimately lead to a more secure banking sector, protecting it from the excesses that have caused so many problems in the western financial system?
Please let us know your thoughts and experiences in the comments section below.