Central Bank of Lebanon Circular No. 493 Amending Decision No. 7156 on Lebanese Banks' Deposits, Investments, and Loans at Foreign Affiliated Institutions

Circular No. 493

For Banks

We refer you to Circular No. 12814 dated 28/5/2018 concerning the amendment of the Basic Decision No. 7156 dated 10/11/1998 (Deposits, Investments, and Loans of Lebanese Banks in Sister or Affiliated Banks and Institutions Abroad) attached to Basic Circular No. 57.

A copy of the Interim Decision No.

Beirut, on 28 May 2018

Governor of the Central Bank of Lebanon

Riad T. Salamah

Interim Decision No. 12814

Amending Basic Decision No. 7156 dated 10/11/1998 concerning the deposits, investments, and loans of Lebanese banks in sister or affiliated banks and institutions abroad

The Governor of the Central Bank of Lebanon,

Based on the Monetary and Loan Law, particularly Article 174 thereof,

And based on Basic Decision No. 7156 dated 10/11/1998 and its amendments concerning the deposits, investments, and loans of Lebanese banks in sister or affiliated banks and institutions abroad,

And based on the decision of the Central Council of the Central Bank of Lebanon taken in its session held on 16/5/2018,

Decides as follows:

The section "or" of Basic Decision No. 7156 dated 10/11/1998 Article 1: The following text is added to "" in Item (4) of Article 2:

« 4- The contributions, participations, investments, and mandatory deposits imposed by the laws, regulations, or relevant authorities (banking, financial...) in the host country, which are carried out directly or indirectly by:

• Branches of the Lebanese bank abroad.
• Banks, financial institutions, and investment funds in which the Lebanese bank holds a stake or participates abroad.

The concerned Lebanese bank shall inform the Central Bank of Lebanon and the Banking Supervision Committee of the details of the operations subject to Item (4) hereof, in order to obtain the approval of the Central Bank of Lebanon to carry them out, and this at its full responsibility.

The Central Bank of Lebanon may impose on the concerned Lebanese bank to form specific provisions against these contributions, participations, investments, or mandatory deposits. »

Article 2: This Decision shall be enforced upon its issuance.

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

Beirut, on 28 May 2018

Governor of the Central Bank of Lebanon

Riad T. Salamah