The Central Bank of Lebanon revealed that it had drawn up a "road map" to support its goal for Lebanese banks to strengthen their position, by increasing the capital by 20 percent, after the expiry of a deadline of acheiving this by the end of last February.
According to the Lebanese Central Bank, it was agreed to set up a road map with deadlines for implementation, through which the Banque du Liban will resort to taking appropriate measures related to the implementation of the provisions of Circular No. (154).
The banking sector in Lebanon is heavily exposed to one of the most indebted countries in the world, and it is at the heart of an unprecedented financial crisis that began in late 2019. A number of Lebanese banks are finding it difficult to achieve the targeted percentage of the capital increase.
Central Bank Governor Riad Salameh warned banks that would not achieve the target level that they would be forced to exit the market. The Central Bank also asked banks to raise liquidity by 3 percent with foreign correspondent banks, and some large depositors were urged to return between 15 and 30 percent of the funds transferred abroad.
Source (Al Sharq Al Awsat Newspaper, Edited)
