Regulatory Alerts2024-02-29 | 13621Conditions for Establishing and Operating Financial Institutions
The Acting Governor of the Central Bank of Lebanon issued Decision No. 13621 to amend Basic Decision No. 7136 by introducing Article 12 bis, which mandates Lebanese financial institutions to suspend dividend distributions on ordinary share capital for prior financial years throughout 2024. The amendment, effective immediately upon issuance and published in the Official Gazette, aligns with the Monetary and Banking Law and a Central Bank Council resolution from February 28, 2024. This regulatory update ensures capital retention within the financial sector to support economic stability and liquidity management.
Central Bank Circular No. 693
For Financial Institutions
We enclose a copy of Central Bank Decision No. 13621 dated 29/02/2024 regarding the amendment of Basic Decision No. 7136 dated 22/10/1998 (Conditions for Establishing and Operating Financial Institutions) attached to Basic Circular No. 2 for Financial Institutions.
Beirut, February 29, 2024
Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri
Central Bank Decision No. 13621
Amendment of Basic Decision No. 7136 dated 22/10/1998
The Acting Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Article 182 thereof, And pursuant to Basic Decision No. 7136 dated 22/10/1998 and its amendments regarding the conditions for establishing and operating financial institutions, And pursuant to the decision of the Central Bank Council taken during its meeting held on 28/02/2024,
Has decided as follows:
Article One: The following text is added to Basic Decision No. 7136 dated 22/10/1998 (Article 12 bis): « Article 12 bis: Lebanese financial institutions are requested not to distribute dividends on ordinary share capital during the year 2024 for previous financial years. »
Article Two: This decision shall be effective upon its issuance.
Article Three: This decision shall be published in the Official Gazette.
Beirut, February 29, 2024
Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri