RegAlert2024-11-21 | 13677Added · Updated
Exceptional exemptions from banks required investments
The Central Bank of Lebanon, through Acting Governor Dr. Wissam Mansouri, issued Decision No. 13677 to amend Basic Decision No. 13217 regarding exceptional exemptions from banks' required investments. The amended Article Three bis mandates that each bank deposit cash in a free account or with the Central Bank, equivalent to 100% of foreign currency cash funds, while explicitly excluding Lebanese Eurobonds and prohibiting non-compliant banks from selling them. This regulatory update, effective immediately upon issuance on November 21, 2024, clarifies the calculation of external liquidity ratios and specifies eligible securities classified at fair value.
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Central Bank Circular No. 715 for Banks
We hereby enclose a copy of Central Bank Decision No. 13677 dated 2024/11/21 concerning the amendment of Basic Decision No. 13217 dated 2020/4/9 regarding exceptional exemptions from banks' required investments, attached to Basic Circular No. 150.
Beirut, on November 21, 2024
Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri
Central Bank Decision No. 13677
Amending Basic Decision No. 13217 dated 2020/4/9
The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Banking Law, particularly Articles 70 and 174 thereof, And based on Basic Decision No. 13217 dated 2020/4/9 and its amendments regarding exceptional exemptions from banks' required investments, And based on the decision of the Central Council of the Central Bank of Lebanon adopted in its meeting held on November 20, 2024, Has decided the following:
Article One: The text of the first paragraph of "Article Three bis" of Basic Decision No. 13217 dated 2020/4/9 is hereby repealed and replaced with the following text:
«Each bank must deposit cash in its own name or through its foreign correspondents in a free account (free from any obligations) or with the Central Bank of Lebanon in the "Cash Funds" account specified in Basic Decision No. 13548 dated 2023/4/19 (Basic Circular No. 165), equivalent to 100% of the value of "Cash Funds" in foreign currencies, as defined by Basic Decision No. 13548 referenced above, provided that this ratio is established prior to the external liquidity ratio specified in Basic Decision No. 13262 dated 2020/8/27 (Basic Circular No. 154). The value of securities specified in paragraphs (a) and (b) of item (2) under the "first" paragraph of Article One of Basic Decision No. 7274 dated 1999/4/15 (Basic Circular No. 62), classified at fair value, shall be included in this ratio. The value of the portfolio of Lebanese Treasury bonds in foreign currencies (Eurobonds) shall not be included in this ratio, and banks operating in a status contrary to the provisions of this Article are prohibited from selling these securities.»
Article Two: This Decision shall take effect upon its issuance.
Article Three: This Decision shall be published in the Official Gazette.
Beirut, on November 21, 2024
Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri
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This document amends: Exceptional Exemptions from Banks’ Mandatory Placements
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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