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Meetings held at the Banque du Liban tend to extend deadlines for banks that were unable to increase the liquidity of correspondent banks.
The meetings taking place at the Banque du Liban between the Banking Supervision Committee, the Financial Markets Authority, the Supreme Banking Authority and the Special Investigation Commission under the supervision of the Governor of the Banque du Liban, Riad Salameh, continue with intense frequency for files of the study bank in implementation of Circular 154, which stipulates to increase the capital of banks by 20 percent and ensure 3 percent as external liquidity for correspondent banks.
Informed banking sources report that the percentage of the capital increase of the banks will not be hampered by any defect, since all the banks have complied with this increase. However, meetings held at the Banque du Liban tend to extend deadlines for banks that have not done so. has been able to increase the liquidity of correspondent banks, and the Banque du Liban can resort to this The measure is after studying the files of all banks, given that the ruler wants to purge and restructure the banking sector, and therefore will not reject the extension, the duration of which may not be the same for all banks, but depending on the status of each of them, at a time when meetings will not delay in deciding the fate of all other banks in light of the circular 154.
It states that there is cooperation between the Banque du Liban and the Association of Banks in a way that serves to restore confidence in this sector, which was the main financier of the national economy, and therefore the Banque du Liban is aware of the importance of its existence and will not resort to rapid action before exhausting all possible means to help banks that need more time to secure the required liquidity of their shareholders or large depositors and even some investors.
Banking sources do not rule out that banks that have not been able to implement the circular are summoned to meetings in order to build from its light what is required of it. In this case, the Banque du Liban will face one of three possibilities:
1- Apply the circular in a professional manner and refer all banks that did not comply with the circular to the Supreme Banking Authority to make the appropriate decision.
2- Extension of the term for some banks that requested the application of the circular in light of the works presented by them.
3- Partial extension of the circular, for the capital increase or for the increase of liquidity.
On the other hand, the Special Investigation Commission is working to implement the rest of the circular, which consists of urging banks to their clients who have transferred their money abroad to recover it by 15 percent, and for bank directors and general managers a 30 percent rate and the degree of cooperation in this field to recover transferred funds.
These sources do not exclude a meeting between Hakimiya and the Banking Association during the next two days.
Source: Central News Agency
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