Regulatory Alerts2025-02-06 | 13697Conditions for the Establishment and Operation of Financial Institutions
Acting Governor Dr. Wissam Mansouri of Bank Lebaon issued Central Decision No. 13697 to amend Basic Decision No. 7136, prohibiting Lebanese financial institutions from distributing profits on ordinary shares during the 2024 and 2025 financial years. This immediate amendment replaces Article Twelve bis of the foundational regulatory framework, effectively retaining earnings to strengthen institutional capital buffers. The decision takes effect upon issuance and is formally published in the Official Gazette.
Circular No. 727 for Financial Institutions
We hereby attach a copy of Central Decision No. 13697 dated 2025/2/6 concerning the amendment of Basic Decision No. 7136 dated 1998/10/22 (conditions for the establishment and operation of financial institutions) attached to Circular No. 2 for Financial Institutions.
Beirut, 6 February 2025
Acting Governor of Bank Lebaon Dr. Wissam Mansouri
Central Decision No. 13697 Amending Basic Decision No. 7136 dated 22/10/1998
The Governor of Bank Lebaon, pursuant to the Monetary and Banking Law, particularly Article 182 thereof, and based on Basic Decision No. 7136 dated 22/10/1998 and its amendments concerning the conditions for the establishment and operation of financial institutions, and based on the decision of the Central Council of Bank Lebaon taken in its meeting held on 5 February 2025,
hereby decides the following:
Article 1: The text of "Article Twelve bis" of Basic Decision No. 7136 dated 22/10/1998 is repealed and replaced with the following text: "Article Twelve bis: Lebanese financial institutions are requested not to distribute profits on ordinary shares during the years 2024 and 2025 from previous financial years."
Article 2: This decision shall take effect upon its issuance.
Article 3: This decision shall be published in the Official Gazette.
Beirut, 6 February 2025 Acting Governor of Bank Lebaon Dr. Wissam Mansouri