Regulatory Alerts2021-11-03 | 13373Constitution of Provisions and Net Liquid Shareholders Equity Ratio in Lebanese Pound and International Financial Reporting Standard No. 9 (IFRS 9)
The Central Bank of Lebanon issued Central Decision No. 13373 to amend Fundamental Decisions No. 7694 and No. 12713, aligning Lebanese banking regulations with International Financial Reporting Standard No. 9 (IFRS 9). The amended provisions mandate that banks and financial institutions establish loan loss provisions based on IFRS 9 guidelines, record them immediately in the local currency of the underlying assets and liabilities, and neutralize resulting foreign exchange debit positions using positive net interest, commissions, or other foreign currency revenues. These changes take effect upon issuance and require immediate publication in the Official Gazette to ensure consistent capital adequacy and risk management across the Lebanese financial sector.