Regulatory Alerts2018-02-08 | 12768Added · Updated
Liquidity Coverage Ratio (LCR)
Banque du Liban issued Decision No. 12768 mandating that all Lebanese banks and their foreign subsidiaries maintain a Liquidity Coverage Ratio exceeding 100% in each major currency to reflect their self-assessed liquidity risk profiles. The regulation establishes a standardized calculation methodology based on a 30-day stress horizon, defining strict eligibility criteria, haircuts, and weighting factors for High Quality Liquid Assets, cash outflows, and cash inflows. Banks must implement robust internal liquidity management frameworks, including supplementary stress testing, scenario analysis, and immediate reporting protocols if the ratio falls below the regulatory minimum.
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