Regulatory Alerts2023-12-28 | 13600Capital Adequacy Regulatory Framework for Banks Operating in Lebanon
The Central Bank of Lebanon issued Decision No. 13600 to amend Article Eight of Basic Decision No. 6939, establishing a comprehensive capital adequacy framework for banks operating in Lebanon. The regulation mandates that banks phase in a 75% reduction of basic capital for specific financial assets over five years, subject to Central Council approval and completion by 31 December 2024. Furthermore, it standardizes the valuation of these assets to US Dollars using a fixed exchange rate published on 30 June 2023, with accounting effective as of 31 January 2023.
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