Central Bank Decision No. 12857 Amending Decision No. 7776 on Credit, Investment, and Participation Operations — BDL — LB

Circular No. 503

For Banks and Financial Institutions

Decision No. 12857 dated 10/8/2018 concerning the amendment of Decision No. 7776 dated 21/2/2001 (Credit, Investment, Participation and Partnership Operations) attached to Circular No. 81.

Beirut, August 10, 2018

Governor of the Central Bank of Lebanon

Riad T. Salamé

Decision No. 12857

Amending Decision No. 7776 dated 21/2/2001
(Credit, Investment, Participation and Partnership Operations)

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Loan Law, particularly Articles 174 and 175 thereof,

Pursuant to Decision No. 7776 dated 21/2/2001 and its amendments concerning credit, investment, participation and partnership operations,

Pursuant to Decision No. 12768 dated 8/3/2018 concerning the Liquidity Coverage Ratio (LCR),

And pursuant to the decision taken by the Central Council of the Central Bank of Lebanon in its meeting held on 8/8/2018,

Has decided as follows:

Article 1: The following text is added to Decision No. 7776 dated 21/2/2001 as "Article 1 bis":

"Article 1 bis: First: The net loans granted by the bank to the private sector in Lebanese Lira may not exceed 25% of the total customer deposits held by the bank in Lebanese Lira.

Second: Banks must deposit the value of any excess over the percentage specified in the 'First' paragraph of this Article in a frozen account at the Central Bank of Lebanon that does not generate interest, until this violation is rectified.

Third: Banks found in violation of the provisions of this Article are granted a maximum deadline of 12/31/2019 to rectify their status.

Fourth: Banks that are unable to rectify their status within the specified deadline may review this matter with the Central Council before 12/31/2019."

Article 2: This Decision shall take effect immediately upon its issuance.

Article 3: This Decision shall be published in the Official Gazette.

Beirut, August 10, 2018
Governor of the Central Bank of Lebanon

Riad T. Salamé

Lineage: No known changes

RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.

amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it

The links and the sentences they come from (1)

Issued under

Decision No. 12768 dated 8/3/2018 concerning the Liquidity Coverage RatioNot in RegAlert
“Pursuant to Decision No. 12768 dated 8/3/2018 concerning the Liquidity Coverage Ratio (LCR)”