Regulatory Alerts1999-04-15 | 7274Added · Updated
Dealing with Non-Resident Sectors
Bank of Lebanon issued Basic Decision No. 7274 to regulate proprietary and agency operations conducted by resident Lebanese banks and financial institutions with non-resident financial sectors. The decision imposes strict limits on receiving foreign currency deposits, granting loans, and investing in sovereign and corporate debt instruments, capping exposure to single issuers at 10% and aggregate non-resident exposures at 50% of own funds. It mandates specific credit rating thresholds (BBB and A), requires prior Central Council approval for exceeding limits, establishes a dedicated interest-free Lira reserve to cover violations, and repeals several outdated regulatory circulars to streamline compliance.