Interview: Farouk Laabidi
What is your assessment of the local banking sector?
FAROUK LAABIDI: Misrata’s local economy and banking sector have remained resilient amid various challenges. After the Covid-19 pandemic the city has seen a revival with new businesses starting up. The banking sector plays an important role in helping to support this economic activity for both consumers and businesses. Banks have been actively expanding their customer base and building trust by offering services tailored to the needs of consumers, small and medium-sized enterprises, and entrepreneurs. Notably, the sector has seen an increase in assets and deposits, which suggests that financial stability is improving, and that consumers and businesses have growing confidence in the banking system. Access to loans and advances has also grown, fostering entrepreneurship, investment and job creation. These positive developments suggest a promising future for Misrata’s economy and financial sector.
How are local banks able to foster financial stability and support sustainable growth in the region?
LAABIDI: Local banks have begun to build trust with customers and businesses amid recent economic challenges. They have achieved this by building awareness and emphasising the importance of transparency in banking and the benefits of secure digital banking solutions, creating financial stability and enhancing sustainable development. Local banks have been improving payment systems through investing in digital infrastructure and technology. They aim to enhance customer satisfaction and facilitate business transactions by offering convenient and secure digital payment options.
Recognising the significance of trust in the banking sector, local institutions have also focused on strengthening customer relationships through personalised services and proactive communication. By engaging with customers regularly and promptly addressing their concerns, banks strive to establish long-term relationships based on reliability and accountability. By prioritising digitalisation, secure payments, and building trust with customers and businesses, the local banking sector aims to create a stable and thriving economic environment, overcoming recent challenges and fostering sustainable growth in the region.
Another strategy relates to the importance of training and building the knowledge base within the financial services industry. In recent years there has been progress in building the talent pool and the long-term success of local banks will depend on ensuring a welleducated and trained labour force that will allow banks to continue to be adaptable and proactive.
In what ways are local banks improving their services and deepening financial inclusion?
LAABIDI: The banking sector’s efforts extend beyond the local level, as banks actively engage with international financial institutions. This ultimately contributes to the growth and development of businesses in Misrata and Libya. Tailored financial products – such as letters of credit and bank guarantees – play an important role in supporting import-export activities. These instruments ensure secure transactions and provide confidence to both buyers and sellers, encouraging international trade partnerships.
However, embracing digitalisation is one of the most effective ways for banks to provide more efficient, affordable and accessible services, especially for those underserved or excluded from the traditional banking system, thereby boosting financial inclusion. Digitising the banking experience will establish the digital identity framework required to foster enhanced transparency and safety in the banking system, while also mobilising additional liquidity to the real economy through more convenient channels. Moreover, digital reforms would help Libya to further improve its risk profile, easing international transactions and facilitating capital inflow.
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