Regulatory Alerts2017-04-10 | 12497Practice of Islamic Banking in Lebanon
The Central Bank of Lebanon issued Circular No. 455 to amend Decision No. 8828, establishing the regulatory framework for Islamic banking operations in the country. The regulation mandates specific contract structures for deposit accounts and profit-sharing agreements, requiring explicit terms regarding profit distribution, fees, and withdrawal conditions. It further imposes mandatory investment risk and profit rate reserves, restricting their investment exclusively to the Central Bank and defining their treatment during voluntary liquidation.
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