The combined value of deposits held in Libya's commercial banks is now about 20% higher than in 2010, but lending remains relatively low.

Deposits held by the 15 commercial banks in Libya reached LD66.9bn ($53.5bn) at the end of last year, a 14% annual rise compared to the same point in 2011.

The change partly reflects how confidence in the banking system has returned following the 2011 conflict, which triggered a shortage of local currency in the banking system. It was only in June last year that the Central Bank finally lifted a ceiling on the amount of Libyan Dinars that could be withdrawn in cash in any one month.

The value of total bank assets has also risen sharply since the end of the conflict, and in December 2012 was around 25% higher than at the same time in 2010.

Yet while they are sitting on ever-growing cash piles, Libya's banks are still lending relatively little.  Outstanding credit as of December totalled LD15.8bn ($12.6bn), equivalent to just 19% of commercial banks' total assets.

Unlocking some of the liquidity held in Libya's banking sector would doubtless help to develop private-sector activity in the coming years, and diversify away from the still-dominant energy sector.