The Public Prosecution in Libya has ordered the detention of two senior officials from Sahara Bank.
The Assistant General Manager and the Head of the Credit Department are now in custody as investigations continue into alleged financial misconduct.
Authorities say the two officials bypassed banking regulations to approve credit facilities worth around $125 million.
The funds, which were meant for production and investment projects, were reportedly disbursed without proper collateral or financial guarantees.
Officials say the investigation remains ongoing.
They add that the case underscores the need for stronger financial oversight and stricter compliance within the banking sector.