Regulatory Alerts2020-05-11 | 13225Central Bank of Lebanon Circular No. 555 Amending Decision No. 7935 and Decision No. 9763 Regarding Bank Foreign Currency Investments and Islamic Bank Reserves
The Governor of the Central Bank of Lebanon issued Circular No. 555 to amend the implementation rules for mandatory bank investments in foreign currencies under Decision No. 7935 and the monetary reserve requirements for Islamic banks under Decision No. 9763. This directive replaces the reporting templates for these regulations to align with recent exemptions and ensures accurate tracking of liabilities subject to the 15% foreign currency investment ratio. The amended decisions became effective for the period from April 30, 2020, to May 6, 2020, and were published in the Official Gazette.
Circular No. 555
For Banks
We enclose herewith a copy of Intermediary Decision No. 13225 dated 11/5/2020 concerning the amendment of:
- The Basic Decision No. 7935 dated 27/9/2001 (Implementation Rules for Basic Decision No. 7926 dated 20/9/2001 (Banks' Mandatory Investments)) attached to Circular No. 86.
- The Basic Decision No. 9763 dated 9/11/2007 (Mandatory Monetary Reserve and Minimum Special Reserve for Islamic Banks and their Mandatory Investments) attached to Circular No. 113.
Beirut, May 11, 2020
Governor of the Central Bank of Lebanon
Riad T. Salam
Intermediary Decision No. 13225
Amending Basic Decision No. 7935 dated 27/9/2001 and Basic Decision No. 9763 dated 9/11/2007
The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Discount Law, specifically Articles 70 and 174 thereof, Pursuant to Basic Decision No. 7935 dated 27/9/2001 and its amendments concerning the implementation rules for Basic Decision No. 7926 dated 20/9/2001 (Banks' Mandatory Investments), Pursuant to Basic Decision No. 9763 dated 9/11/2007 and its amendments concerning the mandatory monetary reserve and minimum special reserve for Islamic banks and their mandatory investments, Pursuant to Basic Decision No. 13217 dated 9/4/2020 and its amendment concerning exceptional exemptions from banks' mandatory investments,
And based on the principle that the Governor's powers are intended to ensure the continuity of the Central Bank of Lebanon as a public service,
Decides as follows:
Article 1: The text of Model (-10RO) attached to Basic Decision No. 7935 dated 27/9/2001 is repealed and replaced by the new text attached to this Decision.
Article 2: The text of Model (-20RO) attached to Basic Decision No. 9763 dated 9/11/2007 is repealed and replaced by the new text attached to this Decision.
Article 3: This Decision shall take effect as of the period extending from Thursday, April 30, 2020, to Wednesday, May 6, 2020.
Article 4: This Decision shall be published in the Official Gazette.
Beirut, May 11, 2020
Governor of the Central Bank of Lebanon
Riad T. Salam
Central Bank of Lebanon Foreign Currency Liabilities Subject to the 15% Rate Imposed by Basic Decision No. 7926 Attached to Circular No. 86 and Basic Decision No. 7935 Attached to Circular No. 87 Statistics and Economic Research Directorate
Bank Number: Model -10RO Average between _______________ and_________________ Bank Name: Valued in Thousands of US Dollars
| Account Number | Description | USD | EUR | GBP | CHF | CAD | AUD | JPY | Other | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| 20100 | Other Non-Resident Issuing Institutions | |||||||||
| 20180 | Less: Accrued Unpaid Interest - Non-Resident | |||||||||
| 20200 | Non-Resident Commercial Banks | |||||||||
| 20200x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 20250 | Less: Credit Accounts for Debit Accounts - Non-Resident | |||||||||
| 20280 | Less: Accrued Unpaid Interest - Non-Resident | |||||||||
| 20300 | Non-Resident Medium and Long-Term Credit Institutions | |||||||||
| 20300x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 20370 | Less: Credit Accounts for Debit Accounts - Non-Resident | |||||||||
| 20380 | Less: Accrued Unpaid Interest - Non-Resident | |||||||||
| 20500 | Resident and Non-Resident Registered Financial Institutions | |||||||||
| 20500x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 20560 | Less: Credit Accounts for Debit Accounts | |||||||||
| 20580 | Less: Accrued Unpaid Interest | |||||||||
| 23900 | Other Resident and Non-Resident Financial Sector Institutions | |||||||||
| 23900x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 23960 | Less: Credit Accounts for Debit Accounts | |||||||||
| 23980 | Less: Accrued Unpaid Interest | |||||||||
| 20800 | Customer Deposits - Resident and Non-Resident | |||||||||
| 20800x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 20871 | Less: Letters of Credit Guarantees for Imports | |||||||||
| 20890 | Less: Credit Accounts for Debit Accounts | |||||||||
| 20895 | Less: Accrued Unpaid Interest | |||||||||
| 24300 | Deposits from Credit Contract Sources - Resident and Non-Resident | |||||||||
| 24300x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 24301 | Less: Accrued Unpaid Interest | |||||||||
| 20900 | Public Sector Deposits | |||||||||
| 20900x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 20980 | Less: Accrued Unpaid Interest | |||||||||
| 21000 | Payments Values - Resident and Non-Resident | |||||||||
| 21000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 21210 | Others - Private Sector (Resident and Non-Resident) Creditors | |||||||||
| 21210x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 21221 | Public Sector - Demand Accounts - Others Creditors | |||||||||
| 21221x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 21225 | Cash for Electronic Operations Guarantees | |||||||||
| 21300 | Partners - Resident and Non-Resident | |||||||||
| 21300x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 21325 | Accrued Unpaid Interest: Less | |||||||||
| 21330 | Cash Advances for Coverage of Deficits: Less | |||||||||
| 21350 | Deposits for Increase in Own Funds: Less | |||||||||
| 21700 | Debt Securities and Similar Instruments (Maturity 1 Year or Less) | |||||||||
| 21748 | Less: Accrued Unpaid Interest at Fair Value vs P&L | |||||||||
| 21755 | Less: Accrued Unpaid Interest Classified at Amortized Cost | |||||||||
| 23000 | Branches Abroad | |||||||||
| 23000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 23050 | Less: Credit Accounts for Debit Accounts | |||||||||
| 23080 | Less: Accrued Unpaid Interest | |||||||||
| 23100 | Head Office, Parent Institution, Sister/Brother/Child Banks and Financial Institutions (Excluding Resident Banks) | |||||||||
| 23100x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 23150 | Less: Credit Accounts for Debit Accounts | |||||||||
| 23180 | Less: Accrued Unpaid Interest | |||||||||
| 24600 | Certificates of Deposit at Fair Value vs P&L (Maturity 1 Year or Less / Excluding Sold to Resident Banks) | |||||||||
| 24680 | Less: Accrued Unpaid Interest | |||||||||
| 24700 | Certificates of Deposit at Amortized Cost (Maturity 1 Year or Less / Excluding Sold to Resident Banks) | |||||||||
| 24780 | Less: Accrued Unpaid Interest | |||||||||
| 99999 | Total Resident Liabilities in US Dollars |
Note: Review of Basic Decision No. 7926 Article 1: Debt securities, deposit certificates, and bank certificates issued by banks and loans obtained from the financial sector with a remaining maturity of one year or less.
Name: ------------------------------ Signature: -----------------------------
Foreign Currency Liabilities for Islamic Banks Subject to Basic Decision No. 9763 Bank Number: Model -20RO Average week ending //____ Islamic Bank Name: ___________ Valued in Thousands of US Dollars
| Account Number | Description | USD | EUR | GBP | CHF | CAD | AUD | JPY | Other | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| 201000 | Issuing Institutions - Non-Resident | |||||||||
| 202000 | Of which: Non-Resident Banks - Resident and Non-Resident Financial Institutions (1) | |||||||||
| 202000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 203000 | Branches Abroad | |||||||||
| 203000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 204000 | Parent Institution and Related Financial Institutions (Resident and Non-Resident) Excluding Resident Banks | |||||||||
| 204000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 205000 | Public Sector Accounts | |||||||||
| 205000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 206000 | Investment Accounts - Customers - Resident and Non-Resident | |||||||||
| 206000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 207000 | Partner Credit Accounts - Resident and Non-Resident | |||||||||
| 207000x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 207900 | Less: Accounts for Coverage of Bad Debts | |||||||||
| 209000 | Issued Sukuk - Resident and Non-Resident | |||||||||
| 209800 | Less: Accrued Unpaid Burdens | |||||||||
| 211000 | Creditors' Debts - Resident and Non-Resident | |||||||||
| 212110 | Various Creditors, Private Sector - Resident and Non-Resident | |||||||||
| 212110x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 212300 | Payments Values - Resident and Non-Resident | |||||||||
| 212300x | Less: New Accounts Subject to Circular No. 150 | |||||||||
| 299999 | Total Resident Liabilities in Thousands of US Dollars |
Foreign Currency-Bound Investment Accounts Subject to Minimum Reserve for Islamic Banks
| Account Number | Description | Amount |
|---|---|---|
| 322000 | Bound Investment Account Liabilities | |
| 999999 | Total Liabilities and Bound Investment Accounts in Thousands of US Dollars |
Fax Number: ______________________________________ Responsible Person Name: ________________________ Signature: ___________________
(1) This amount represents a portion of the amount found in item No. 202000 Banks and Financial Institutions in Model No. 3010