Regulatory Alerts2026-05-08 | 13818Exceptional Exemptions from Banks’ Mandatory Placements
The Governor of the Central Bank of Lebanon issued Decision No. 13818 to amend Basic Decision No. 13217, mandating that banks deposit cash equivalent to 100% of their foreign currency "Cash Funds" in domestic or overseas accounts, with specific exemptions for foreign bank branches. The regulation permits the inclusion of fair-valued Lebanese Treasury bonds and Eurobonds in this ratio, allowing compliant banks to sell these instruments to secure liquidity for one year or fund commercial and investment operations without covering operational expenses. Non-compliant banks must retain bonds equivalent to twice their shortfall until the deficit is resolved, while funds in "Special Accounts" remain exempt from this new obligation but continue to operate under the original 2020 decision.