Regulatory Alerts2021-09-21 | 13362Capital Adequacy Regulatory Framework for Banks Operating in Lebanon
The Central Bank of Lebanon issued Decision No. 13,362 to amend Basic Decision No. 6,939 and its regulatory framework for bank capital adequacy. The amendment permits up to 75% of unrealized gains on Fair Value Through Other Comprehensive Income (FVTOCI) shares to be included in Common Equity Tier 1 capital, subject to a 25% reserve requirement amortized over ten years. It also repeals and replaces Annexes 1, 3, and 4 to update capital composition rules, corporate loan portfolio risk weights, and regulatory adjustments for Total and Tier 2 Capital.
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