Towards an Effective Audit Committee Role in Corporate Governance in Libyan Banks: Composition Criteria and Membership Requirements

This study examines the criteria for audit committee composition and its membership requirements within the context of effective corporate governance in Libyan banks. Members of audit committees at Libyan banks, directors of internal audit departments, and members of board of directors at these banks in addition to a number of external auditors and academicians from Libyan universities were targeted by a structured questionnaire. The participants emphasized the importance of a well written charter stating the committee's responsibilities as an essential starting point. Other criteria considered important include quarterly regular meetings, sufficient size, non-executive chairperson and the committee to report to the board of directors regarding its duties and responsibilities. The results indicate that independent audit committee members with financial literacy and accounting expertise as well as banking business knowledge are significant ingredients to ensure an effective audit committee performing corporate governance. The findings provide regulators and researchers with a foundation upon which a model of audit committees' formation and structure in Libyan banks can be formulated. Keywords: audit committee composition, membership requirements, corporate governance, Libyan commercial banks

The introduction of Islamic finance in Libya: Capturing the opportunities for SMEs development / Abdulaziz M. Abdulsaleh.

In most countries, especially the developing ones, SMEs have a dynamic role as engines through which the growth objectives can be accomplished. This is very true in the case of Libya where the economy has been over-reliant on oil and gas as well as inefficient public sector. Unfortunately, SMEs in Libya are not playing their expected role as access to finance remains to be a formidable challenge. While banks remain the major external financier, if not the only one, many studies found that Libyans in general avoid dealing with conventional banks mainly due to religious beliefs. However, the recent introduction of Islamic banking and finance in the country could be a game changer. As such, this paper attempts to assess the opportunities for SMEs development in Libya following the recent introduction of Islamic finance. The study is exploratory; therefore the relevant literature is sourced and reviewed. The review shows that there is a strong demand for Islamic finance products from Libyan businesses including SMEs. Coupled with a strong enabling environment in which political stability and regulatory clarity are maintained Islamic finance is viable and has the ability to significantly contribute to the development of SMEs sector