Regulatory Alerts2019-09-18 | 13105Central Bank of Lebanon Circular No. 527: Amendment to Decision No. 6939 on Capital Adequacy Regulatory Framework for Banks Operating in Lebanon
The Central Bank of Lebanon issued Circular No. 527 to amend Decision No. 6939, establishing updated credit risk weightings and expected loss ratios for banks operating in Lebanon. The regulation introduces stricter capital requirements by modifying Article 11 to restrict dividend distributions when capital ratios fall below specific thresholds and mandates Central Bank approval for capital shortfalls. Additionally, it replaces Annexes 4 and 6 to standardize risk weights for sovereign, interbank, corporate, and retail exposures, as well as off-balance sheet items and financial derivatives.
Circular No. 527
For Banks
We refer you to Circular No. 13105 dated 18/9/2019 regarding the amendment of Decision No. 6939 dated 25/3/1998 (Regulatory Framework for Capital Adequacy of Banks Operating in Lebanon) attached to Circular No. 44.
Beirut, on 18 September 2019
Governor of the Central Bank of Lebanon
Riad T. Salam