Financial Statements of Financial Institutions

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Text / Section 2 C.B.L. No. 1 T-30 / 2018-6

Basic Circular No. 1 for Financial Institutions

We enclose a copy of Basic Decision No. 6504 dated March 13, 1997, concerning the regulation of financial statements for financial institutions.

Beirut, March 13, 1997 Governor Riad T. Salamé Old No. 4

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Basic Decision No. 6504 Financial Statements of Financial Institutions The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Credit Law, particularly Article 179 in conjunction with Article 146 thereof, and pursuant to the decision of the Central Council adopted in its meeting held on March 12, 1997, decides as follows:

Article One: All financial institutions operating in Lebanon are required to adopt Form 2010 (Assets - Liabilities - Off-Balance Sheet - Attached Assets - Attached Liabilities), prepared by the Central Bank of Lebanon and the Banking Control Committee, and provided on a compact disc (CD), which can be obtained from the Information Technology Department at the Central Bank, for the purpose of organizing:

• 1. Final monthly and annual statements for Lebanon branches.
• 2. Final monthly and annual statements for foreign branches.
• 3. Final monthly and annual statements for Lebanon and foreign branches.
• 4. Final consolidated monthly and annual statements.
• 5. Final monthly and annual statements for each of the "subsidiary units" defined in regulatory texts issued by the Central Bank, provided that branches of the concerned institution located in one country are considered as a single "subsidiary unit".

1 - The latest amendment to this article was introduced by Article Five of Interim Decision No. 12750 dated January 15, 2018 (Interim Circular No. 484), which takes effect as of the statement dated February 28, 2018. 2 - Article Four of Interim Decision No. 9903 dated May 14, 2008 stipulates the following: » This decision takes effect as of the statement dated May 31, 2008, with the following exceptional submissions:

• 1. The statement referred to in paragraph (5) of Article One of this decision, dated December 31, 2007, to be submitted by May 31, 2008.
• 2. The list of "subsidiary units" referred to in paragraph (5) of Article Two of this decision, to be submitted by May 20, 2008.»

3 Text / Section 2 C.B.L. No. 1 T-30 / 2018-6 Article Two: Financial institutions shall provide each of the Banking Control Committee, 2 the Economics Department, and the Financial Markets Directorate at the Central Bank of Lebanon with the following:

• 1. The monthly statements specified in paragraphs (1), (2), (3), and (4) of Article One above, recorded on a diskette within ten days, and printed in hard copy within twelve days from the cutoff date of these statements.
• 2. The final annual statements specified in paragraphs (1), (2), (3), and (4) of Article One of this decision, recorded on a diskette and printed in hard copy by the end of June each year.
• 3. The monthly statements specified in paragraph (5) of Article One of this decision, electronically, via the Electronic Statistical Reports Transmission Project (eSTR), within ten days, and printed in hard copy within twelve days from the cutoff date of these statements.
• 4. The final annual statements specified in paragraph (5) of Article One of this decision, electronically, via the Electronic Statistical Reports Transmission Project (eSTR), and printed in hard copy by the end of June each year.
• 5. The list of "subsidiary units" 3 prepared according to the form attached to Basic Decision No. 7723 dated December 2, 2000, shall be attached to the monthly and final annual statements referred to in paragraph (5) of Article One of this decision, and upon any amendment to this list.

1 - This article was amended by Article Two of Interim Decision No. 9903 dated May 14, 2008 (Interim Circular No. 165). 2 - The name of this directorate was amended to become the "Economics Department" instead of the "Directorate of Statistics and Economic Research" by Decision No. 13779 dated November 28, 2025. 3 - Article Four of Interim Decision No. 9903 dated May 14, 2008 stipulates the following: » This decision takes effect as of the statement dated May 31, 2008, with the following exceptional submissions:

• 1. The statement referred to in paragraph (5) of Article One... by May 31, 2008.
• 2. The list of "subsidiary units"... by May 20, 2008.»

4 Article Three: Financial institutions shall:

• 1. Prepare financial statements for "subsidiary units" abroad on an individual or consolidated basis, as applicable, i.e., in the event of branches "of the subsidiary unit" or the existence of banks, financial institutions, or other companies whose financial statements are subject to consolidation with those of the concerned "subsidiary unit".
• 2. Classify all accounts, in "subsidiary units", recorded in the host country's currency and other foreign currencies under the category "Non-Residents equivalent to Foreign Currencies in Lebanese Lira", while accounts denominated in Lebanese Lira in these units are classified under the category "Non-Residents in Lebanese Lira", specifically regarding the status of "subsidiary units" abroad or statements that include accounts of "subsidiary units" (foreign branches, Lebanon and foreign branches, consolidated statements).

Article Four: Article Five: This decision shall be published in the Official Gazette and takes effect upon its issuance. Beirut, March 13, 1997 Governor of the Central Bank of Lebanon Riad T. Salamé

1 - This article was added by Article Three of Interim Decision No. 9903 dated May 14, 2008 (Interim Circular No. 165) after being repealed by Article Three of Interim Decision No. 7996 dated December 4, 2001, attached to Interim Circular No. 5. 2 - This article was repealed by Article Three of Interim Decision No. 7996 dated December 4, 2001, attached to Interim Circular No. 5.

5 Text / Section 2 C.B.L. No. 1 T-30 / 2018-6 Central Bank of Lebanon (attached to Basic Decision No. 6271) Economics Department (Basic Circular No. 28) Classification adopted by the Central Bank of Lebanon For economic clients classified in Basic Decision No. 6271 - Basic Circular No. 28 Client Code

000A Non-financial production institutions A100 Production institutions operating under state supervision A200 Non-financial private sector institutions A300 Non-financial institutions under foreign control 000B Financial sector B100 Central Bank B200 Institutions receiving deposits B210 Commercial banks B220 Medium and long-term credit banks B230 Other deposit institutions (savings and credit funds and cooperatives...) B300 Institutions not receiving deposits B310 Financial institutions B320 Finance leasing institutions B330 Specialized financial companies (holding institutions, import/export financing companies...) B400 Financial services brokers B410 Securities exchanges B420 Financial intermediation institutions B430 Currency exchange institutions B440 Financial guarantee institutions B450 Specialized institutions for financial derivatives contracts (derivatives) B460 Credit institutions (Trusts) B470 Institutions for marketing and guaranteeing financial rights subscriptions B500 Insurance companies and pension funds B510 Insurance companies (including brokerage companies) B511 • Life insurance B512 • Property/Casualty insurance B513 • Reinsurance companies B520 Pension funds 000C Public sector C100 Central government C110 Ministries C120 Public administrations C130 Administrations with supplementary budgets

6 C200 Non-financial public institutions C210 Investment institutions C220 Administrative institutions (non-commercial nature) C300 Municipalities C400 National Social Security Fund 000D Non-profit institutions serving households D100 Non-profit institutions that produce for market D200 Non-profit institutions that do not sell their output 000E Households E100 Employers E200 Self-employed workers E300 Employees E400 Beneficiaries of private incomes and service protection and transfer funds 000F Non-resident sector F100 Non-resident financial sector F110 Foreign central banks F120 International financial institutions F130 Non-resident financial institutions F200 Foreign public administrations F300 Non-resident non-financial sector F310 Non-resident international organizations F320 Non-resident non-financial companies and other units.

Canceled Models: Note B310-3, B310-2-1, B310-2, B310-1-1, B310-1 and B310-4, which were originally attached to this circular, by virtue of Article Three of Interim Decision No. 7996 dated December 4, 2001 (Interim Circular No. 5). (Pages 7 to 20 are repealed)