Regulatory Alerts1999-02-11 | 7224Issuing of Certificates of Deposit & Banking Certificates
Banque du Liban issued Basic Decision No. 7224 and Circular No. 61 to establish a comprehensive regulatory framework governing the issuance, terms, and oversight of certificates of deposit and interbank banking certificates. The decision mandates strict capital adequacy ratios, minimum denomination thresholds, specific maturity periods for different bank categories, and explicitly prohibits self-purchasing or indirect discounting by issuing institutions and their affiliates. It further imposes rigorous monthly reporting obligations, continuous auditor verification duties, and administrative penalties for non-compliance while granting the Central Council discretionary authority for exceptional bearer issuances and foreign marketing exemptions.