After the meeting held by the Board of Directors, the Association of Banks in Lebanon published the following press release:

The Association of Banks in Lebanon reiterates its declared and well-known position that the mandatory reserve should not be compromised by the Banque du Liban (Central Bank) under any circumstances, knowing that said reserve constitutes an integral part of customers’ deposits with banks, as previously explained by the ABL in its letter to His Excellency the Governor of the Central Bank.

The ABL holds the state responsible for draining bank deposits with Banque du Liban during the past years. These ongoing behaviors will eliminate any attempt that may contribute to the economic and financial revival once the government is formed and the economic wheel is launched in cooperation with international financial institutions and countries supporting Lebanon.

In addition, the ABL holds the Central Bank responsible for using the mandatory reserves and submitting to the pressures exerted on it by the political authorities, contrary to the Monetary and Credit Law where the purpose of the mandatory reserves is limited to the needs of the banking sector. The ABL confirms that reducing the mandatory reserve rate in foreign currencies requires the Central Bank to return the released amounts to depositors through banks. The use of said amounts is not permitted as a result of reducing the rate from 15% to 14% for subsidy purposes.

In hope that such situation would not occur again, the ABL announces that it is currently studying the measures that could be taken in order to prevent the use of the mandatory reserves by the Central Bank or the state.

Communication & PR Department