Regulatory Alerts2001-09-27 | 7935Implementation Provisions of Basic Decision No. 7926 of 20 September 2001 on Banks’ Mandatory Placements
Bank of Lebanon mandates that commercial banks maintain a 11% mandatory placement rate in foreign currencies, calculated weekly using official closing exchange rates on Wednesday for seven major currencies. The regulation specifies exclusions such as foreign currency current accounts and accrued interest, requires weekly electronic reporting via the eSTR system, and permits banks to obtain loans against excess placements at rates exceeding standard credit rates by at least two percentage points. These provisions, effective upon issuance and subject to periodic interim amendments, standardize reporting formats and ensure consistent capital allocation across resident and non-resident financial entities.
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