Regulatory Alerts2004-08-26 | 8829Conditions for the Establishment of Islamic Banks in Lebanon
Banque du Liban issued Basic Decision No. 8829 to establish the regulatory framework for Islamic banks in Lebanon, mandating that founders include domestic or foreign Islamic banks with at least one-third of shares held by such entities. The decision sets a minimum capital requirement of 150 billion Lebanese pounds, permits reduced capital down to 30 billion under specific equity and joint liability conditions, and requires explicit Sharia compliance through a dedicated advisory board in the banks' articles of association. Furthermore, it outlines licensing procedures for both locally established and foreign-branch Islamic banks, grants a six-month completion window post-approval, and applies existing non-Islamic banking regulations where no conflict exists.