Regulatory Alerts2019-11-04 | 13129Central Bank of Lebanon Circular No. 532: Amendment to Decision No. 6939 on Capital Adequacy Framework
The Governor of the Central Bank of Lebanon issued Decision No. 13129 to amend the regulatory capital adequacy framework for banks operating in Lebanon. The decision mandates that Lebanese banks refrain from distributing dividends for the 2019 fiscal year and requires them to increase their core equity capital by 20% of common shareholders' equity. This capital increase must be executed through cash contributions in US dollars, with half due by December 31, 2019, and the remainder by June 30, 2020.
Circular No. 532 For Banks
We refer to Circular No. 13129 dated 4/11/2019 regarding the amendment of Decision No. 6939 dated 25/3/1998 (Regulatory Framework for Capital Adequacy of Banks Operating in Lebanon) attached to Circular No. 44.
Beirut, on 4 November 2019
Governor of the Central Bank of Lebanon
Riad T. Salam