Regulatory Alerts2017-12-22 | 12740Central Bank of Lebanon Decision No. 12740 Amending Decision No. 7835 on Reserve Requirements
The Central Bank of Lebanon issued Decision No. 12740 to amend Decision No. 7835 regarding mandatory reserve requirements. The amendment suspends the deduction of mandatory reserves for loans that the Central Bank has agreed to extend after December 20, 2017, allowing banks to utilize balances under Decision No. 6116. This measure was adopted following a resolution by the Central Bank Council on December 20, 2017, and entered into force immediately upon issuance.
Circular No. 481
For Banks
We refer you to Circular No. 12740 dated 22/12/2017 concerning an amended copy of Decision No. 7835 dated 2/6/2001 (the fundamental decision on mandatory reserves) attached to Fundamental Decision No. 84 dated 2/6/2001.
Beirut, on 22 January 2017
Governor of the Central Bank of Lebanon
Riad T. Salam
Decision No. 12740
Amending Fundamental Decision No. 7835 dated 2/6/2001 Regarding Mandatory Reserves
The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Loan Law, particularly Articles 174, 70, 76, and 79 thereof,
Pursuant to Fundamental Decision No. 7835 dated 2/6/2001 and its amendments regarding mandatory reserves,
Pursuant to the resolution of the Central Bank Council of Lebanon adopted in its meeting held on 20/12/2017,
Decides as follows:
Article 1: The following paragraph is added to the end of "Article Twenty-Five Bis" of Fundamental Decision No. 7835 dated 2/6/2001:
"The deduction of mandatory reserve obligations shall be suspended, and the deduction of mandatory reserves against loans approved by the Central Bank of Lebanon for extension of their maturity after 20/12/2017 shall be suspended, provided that the remaining balances may benefit from the provisions of Fundamental Decision No. 6116 dated 7/3/1996, subject to the conditions specified in its Tenth Article."
Article 2: This Decision shall enter into force upon its issuance.
Article 3: This Decision shall be published in the Official Gazette.
Beirut, on 22 January 2017
Governor of the Central Bank of Lebanon
Riad T. Salam