Regulatory Alerts1998-11-10 | 7156Lebanese Banks' Deposits, Investments and Loans in Foreign Related Banks and Institutions Abroad
The Central Bank of Lebanon issued Basic Decision No. 7156 to cap Lebanese banks' net deposits, investments and loans in foreign related financial and non-financial entities at 25% of their net basic own funds. The regulation mandates prior approval for direct and indirect participations in foreign financial sectors, introduces specific exemptions for holdings under 20%, and requires immediate notification and potential provisioning for mandatory foreign allocations. Furthermore, it repeals two prior regulatory decisions and sets a one-year compliance window for existing non-conforming operations.
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