How will Lebanese banks compensate their losses?

Lebanon Economy
01-02-2023 | 08:05
High views
Share
LBCI
Share
LBCI
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
How will Lebanese banks compensate their losses?
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
2min
How will Lebanese banks compensate their losses?

Despite the financial crisis that started in October 2019, which was primarily represented by a drop in the value of the Lebanese lira against the US dollar, banks converted their customers' lira deposits into US dollars at the time at the official rate of 1,507 LBP.

As the new official rate of the dollar, which is 15 thousand LBP started to be implemented, the Central Bank considered that there were losses incurred by banks as a result of these converting operations, which directly affect their capitals.
It asked banks to compensate these losses in dollars over a period of 5 years at a rate of 20% every year, that is, until 2027.
In this process of compensating for losses and increasing capital, the Central Bank allowed banks to re-evaluate their real estate assets in Lebanon and re-evaluate their shares and assets abroad, in addition to the possibility for banks to calculate 50% of the profits of re-evaluation at home and abroad in the process of increasing capital and covering losses.
All of the aforementioned is regarded as a road map created by the Central Bank for banks to enhance their capital, along with the potential for these institutions to bring in new shareholders who contribute to the capital increase.
However, given the current state of the financial industry, this prospect is nonexistent due to the absence of a crucial component—the element of trust.
Therefore, pending a solution to the problem and a restructuring of the industry, the Lebanese banks have no choice but to grow capital through the current shareholders.
 

Breaking Headlines

Lebanon News

Lebanon Economy

News Bulletin Reports

Banks

Lebanon

Crisis

BDL

Central Bank

LBCI Next
Lebanon updates fuel prices
Recommended For You
d-none hideMe
LBCI
Lebanon Economy
2026-09-15

Lebanon's fuel prices rise

LBCI
News Bulletin Reports
2026-09-13

In Lebanon, the same salary buys less: Food prices climb as fuel jumps more than 80%

LBCI
Lebanon Economy
2026-09-11

Lebanon's fuel prices rise

LBCI
News Bulletin Reports
2026-09-09

From cash to cards: Lebanon's economy takes a digital turn

Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
LBCI
World News
2026-02-03

Russian attacks on Ukraine 'don't signal seriousness' on peace: NATO chief

LBCI
Lebanon News
2026-06-08

Lebanon PM’s office: AI-generated video of Nawaf Salam is fake

LBCI
World News
2026-02-02

UK expels Russian diplomat in response to Russia expulsion

LBCI
Lebanon News
2026-03-04

Lebanese General Security warns citizens against following ‘Mossad Arabic’ on Instagram

Videos
d-none hideMe
LBCI
Lebanon News
2026-08-06

Lebanon-Israel talks: delegations arrive at US Embassy in Rome — Video

LBCI
Lebanon News
2026-07-24

Residents begin returning to Zawtar el-Gharbiyeh, southern Lebanon: Video

LBCI
Lebanon News
2026-07-20

Slotkin to LBCI: Lebanese army needs resources to confront Hezbollah, $36 million request submitted for special forces

LBCI
Lebanon News
2026-06-26

Lebanon’s ambassador to Washington: trilateral framework agreement first step toward restoring sovereignty

LBCI
Lebanon News
2026-06-26

Rubio on Lebanon-Israel framework agreement: 'beginning of the beginning,' more work needed

LBCI
Lebanon News
2026-06-26

Lebanon, Israel sign trilateral framework agreement after Washington talks attended by Rubio: Video

LBCI
Lebanon News
2026-06-20

Israeli strikes renew on Choukine, Maifadoun, and Nabatieh al-Fawqa in southern Lebanon: Video

LBCI
Lebanon News
2026-06-19

Massive Israeli strikes hit South Lebanon under ceasefire conditions

LBCI
Lebanon News
2026-06-16

Trump criticizes Israel’s Lebanon campaign, says war has gone on ‘too long’ and floats Syria role in conflict

Most read
d-none hideMe
24 hours
7 days
Month
LBCI
Lebanon News
11:50

Lebanon prosecutor requests charges for ex-president over port blast: AFP

LBCI
Lebanon News
13:02

LBCI sources: No military aid announcements expected at Paris conference

LBCI
News Bulletin Reports
12:50

Israel's Lebanon plan under review as Rome talks are postponed

LBCI
News Bulletin Reports
12:55

US Ambassador's visit to South Lebanon draws mixed reactions as Israeli shelling continues

LBCI
Middle East News
08:43

More than 100,000 flee fighting in Yemen: UN

LBCI
Lebanon News
05:07

Lebanon wants Israel security deal as prelude to peace: President to AFP

LBCI
Lebanon News
05:15

Lebanon wants new force to fill 'vacuum' when UN peacekeepers leave: President to AFP

LBCI
World News
07:24

Brent rises above $107 as attacks, pipeline outage deepen Saudi supply concerns

Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
Download now the LBCI mobile app
We use
cookies
We use cookies to make
your experience on this
website better.
Accept
Learn More