Libya's banking system is dominated by four banks which are owned in full or inthe majority by the Libyan Central Bank (Jamahiriya Bank, Wahda Bank, Sahara Bank,
Umma Bank and the National Commercial Bank). These banks constitute almost ninety
percent of Libya's banking sector assets. All of these banks have capital of at least 100
million Libyan Dinars, and two of them (Wahda Bank and Sahara Bank), were in the
process of being privatized in 2006. France's BNP Paribas acquired 19% of Libya's Sahara
Bank in July 2007, and took operational control of the bank. The deal also includes an
option allowing BNP Paribas to purchase additional shares up to 51% of Sahara's capital
over the next three to five years. In November 2007, five foreign banks were short listed
for the privatization of Wahda Bank, including French, Italian, Jordanian, Bahraini and
Moroccan institutions; Arab Bank (of Jordan) was selected. They bid on a 19% of the
share of Wahda Bank, with the option to increase their ownership to 51% in three to
five years. The Central Bank announced in October 2007 that it would merge Umma
Bank and Jamahiriya bank into a single entity; that process was completed in 2008
although there are still branches open under the banner of each bank.
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