Central Bank of Lebanon Decision No. 12888 Repealing Decision No. 7129 on Reserves for Unspecified Banking Risks

Circular No. 510

To Banks

Reference: Decision No. 12888 dated 5/10/2018 regarding the issuance of a copy of Decision No. 7129 dated 15/10/1998 concerning the formation of "Reserves for Unspecified Banking Risks," attached to Circular No. 50.

Beirut, on 5 October 2018

Governor of the Central Bank of Lebanon

Riad T. Salamé

Decision No. 12888

Repealing Decision No. 7129 dated 15/10/1998 Concerning the formation of "Reserves for Unspecified Banking Risks",

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Loan Law, particularly Articles 174 and 177 thereof,

And pursuant to Decision No. 7129 dated 15/10/1998 and its amendments concerning the formation of "Reserves for Unspecified Banking Risks",

And pursuant to Decision No. 12713 dated 7/11/2017 concerning the application of International Financial Reporting Standard No. 9 (IFRS 9),

And pursuant to the decision taken by the Central Council of the Central Bank of Lebanon in its meeting held on 3/10/2018,

Hereby decides as follows:

Article 1: Decision No. 7129 dated 15/10/1998 concerning the formation of "Reserves for Unspecified Banking Risks" is repealed, effective as of the 2018 financial year.

Article 2: Banks remain obligated to form "Reserves for Unspecified Banking Risks" required for the 2017 financial year.

Article 3: This Decision shall take effect immediately upon its issuance.

Article 4: This Decision shall be published in the Official Gazette.

Beirut, on 5 October 2018

Governor of the Central Bank of Lebanon

Riad T. Salamé