Regulatory Alerts2024-09-20 | 13666Capital Adequacy Regulatory Framework for Banks Operating in Lebanon and Regulatory Capital for Calculating the Prudential Limits on Banks Operating in Lebanon
The Central Bank of Lebanon, through Interim Decision No. 13666 and Circular No. 708, amends Basic Decisions Nos. 6939 and 6938 to update the capital adequacy framework and prudential limits for banks operating in Lebanon. The revised provisions allow up to 75% of revaluation reserves to be recognized within basic regulatory capital during a transition period ending December 31, 2025, contingent upon Central Council verification and US Dollar valuation. Additionally, the decision updates Annexes 1 and 2 to align capital gains from real estate revaluations with Article 154 of the Banking and Credit Law, streamlining regulatory capital calculations.
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