This study deals with the nature of Islamic banks and their features, and requirements of these features in terms of control tools and methods appropriate with the particularity of their business and their relation with the traditional central bank. The study aims also to be acquainted with the extent of appropriateness of the traditional control tools and the particularity of the Islamic banking work. The study arrived at a set of requirements which are necessary to adapt the control tools of the traditional central bank with the particularity of the Islamic banking work. The study set also a concept of a control framework supporting the Islamic banking work and regulating the relation of the Islamic banks with the traditional central bank in a manner securing for them an appropriate investment environment free from control and supervision hindrances.

The current study aims to test the validity and success of the Libyan model in converting the traditional banks into Islamic banks and the factors affecting such experience. The model of the study consists of four external factors as the independent variables (the availability of the qualified human resources in Islamic banks, the availability of the Islamic capital market, the employees’ willingness to convert into Islamic banks and the success of the Islamic banking experience) and the internal factor as the dependent variable (the success of the experience in converting into Islamic banks inlibya). To achieve the research aim, quantitative approach has been employed for data collection. Structural equation modeling (SEM) technique was carried out by Amos software to test the validity of the research model. The results obtained in the study showed that all the tested factors had positive effect on the experience of converting into Islamic banks in Libya. The four factors explained 74% of this impact. Among these factors, the qualified human resources showed the greatest impact (55%), which was followed by the success of the Islamic banking experience (41%), while the availability of the Islamic capital market and the employees’ willingness to convert into Islamic banks had the lowest impact (31% and 28%), respectively.

This study aims to test the Influence of the Banking laws and legislation support as a Moderating Variable on the relationship between the independent factors model (the availability of the qualified human resources in Islamic banks, the availability of the Islamic capital market, the employees’ willingness to convert into Islamic banks and the success of the Islamic banking experience) and the dependent factor (the success of the experience in converting into Islamic banks in Libya). Structural equation modeling is used to test the impact of the Moderating Variable (Banking laws and legislation support). Where it is depended on the method of sampling or analysis of what is known as Multiple-Groups analysis. The study found that the model of success of converting the conventional banks into Islamic in the presence of the support of the Banking laws and legislation is appropriate for the first group and inappropriate in light of the lack of support by the Banking laws and legislation for the second group.