Libya's Tripoli-based central bank said on Sunday it would shut down all operations and not resume work until a senior bank official kidnapped earlier in the day was released.
The central bank is the only internationally recognised depository for Libyan oil revenues, a vital economic income for a country torn for years between two rival governments in Tripoli and Benghazi.
The bank said an unknown party was behind the abduction on Sunday of Musaab Muslam, head of its information technology department. Norland met with bank governor Sadiq Kabir to discuss concerns about armed groups gathering around the bank's headquarters in Tripoli, the U.S. embassy said.
"Disputes over distribution of Libya's wealth must be settled through transparent, inclusive negotiations toward a unified, consensus-based budget,” Norland said.
Libya has enjoyed little peace since the 2011 NATO-backed uprising that overthrew longtime dictator Muammar Gaddafi, and it divided in 2014 between warring eastern and western factions.