2020-02-03 | 13189Added · Updated
The Central Bank of Lebanon issued Circular No. 543 to amend Decision No. 6939, establishing mandatory minimum capital adequacy ratios and a 2.5% Conservation Capital Buffer for all banks. The regulation prohibits dividend distributions if any capital ratio falls below the enhanced minimums of 7% for Common Equity Tier 1, 8.5% for Tier 1, and 10.5% for Total Capital. Additionally, the framework updates risk weights for foreign currency exposures and replaces the appendices detailing capital definitions and expected loss calculation percentages.
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Circular No. 543
For Banks
We refer you to Circular No. 13189 dated 3/2/2020 concerning the amendment of Decision No. 6939 dated 25/3/1998 (The Regulatory Framework for Capital Adequacy of Banks Operating in Lebanon) attached to Circular No. 44.
Beirut, on 3rd March 2020
Governor of the Central Bank of Lebanon
Riad T. Salamah
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Source: Banque du Liban — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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