Regulatory Alerts2001-06-02 | 7835Reserve Requirements
The Governor of the Central Bank of Lebanon issues Basic Decision No. 7835 (Circular No. 84) to establish the regulatory framework for reserve requirements, mandating that banks maintain cash reserves at rates of 25% on demand liabilities and 15% on time liabilities. The decision specifies weekly calculation periods, defines eligible deductions for time liabilities up to a 90% cap, and outlines detailed procedures for qualifying loans, securities, deposits, and foreign currency instruments. It further establishes penalty interest rates for shortfalls and prescribes precise reporting formats, approval workflows, and exchange rate fixation rules to ensure regulatory compliance and monetary stability.
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