Regulatory Alerts2007-11-09 | 9763Cash Statutory Reserve, Minimum Special Reserve, and Mandatory Placements of Islamic Banks
Bank Al-Maghrib mandates that all Islamic banks operating in Lebanon establish a 25% mandatory cash reserve on weekly average demand liabilities and a 15% minimum special reserve on time-bound investment accounts, while reducing their mandatory foreign currency placements to 11% of specified elements. The decision requires weekly submissions of Forms (-21RO) and (-20RO) to the Statistics and Economic Research Department by the Saturday following Wednesday, with calculations based on official closing rates and specific account codes. Furthermore, it establishes fallback provisions for reserve shortfalls, allows tailored rules for individual banks, and mandates the use of the eSTR electronic transmission system alongside magnetic diskettes containing all referenced data forms.