Libya: Politics, Economics, Banking, and their Effects on Corporate Governance

Year 2021, Volume: 3 Issue: 1, 91 - 116, 30.06.2021

Abdelhakim Masli , Abdulaziz Elwalda

Abstract

This study examines the concept of corporate governance in Libya from a political, economic, banking perspective, where it relies upon a review and analysis of the literature. As such, the study explores how to develop corporate governance in Libya and it presents an overview of the development of Libya’s accounting and auditing profession and the measures taken to improve the Libyan banking sector, concentrating on the major role of the Code of Corporate Governance (2010) issued by the Central Bank of Libya. The study concludes that the concept of governance in Libya is still in the early stages of development, and it is inhibited by the weaknesses in board governance, government intervention, and the weak legal and regulatory environment. CG practice in Libya is thus operating within an environment that is very different from that in developed countries. It is crucial, therefore, for developing countries to have their own corporate governance frameworks that consider political, economic cultural and social factors found in each country.

Keywords

Corporate Governance, Central Bank of Libya, Libyan Banking Sector, Developing Countries, Libya

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