Banking and finance Beirut

ras beirut 1983

the banking system backbone of local economy balance sheet of $152 billion @ end of 2012, nearing 3.5 times gdp estimated @ $43 billion imf. bank deposits increased in 2012 8% 125 billion dollars, 82 percent of sector s assets. banks still attracting deposits because interest rates offered higher ones in europe , united states , says marwan mikhael, head of research @ blom bank.

beirut s foreign reserves still close all-time high when reached $32.5 billion in 2011 , analysts central bank can cover 80 percent of lebanese currency in market. means central bank can cope unforeseen crisis in future massive foreign currency reserves.

the lebanese banking system endowed several characteristics promote role of beirut regional financial center, in terms of ensuring protection foreign capital , earnings. lebanese currency convertible , can exchanged freely other currency. moreover, no restrictions put on free flow of capital , earnings , out of lebanese economy. passing of banking secrecy law on 3 september 1956, subjected banks established in lebanon foreign banks branches secret of profession . both article 16 of law no. 282 dated 30 december 1993 , article 12 of decree no. 5451 dated 26 august 1994, offer exemptions income tax on interest , revenues earned on types of accounts opened in lebanese banks. on first of april 1975, decree no. 29 established free banking zone granting lebanese government right exempt non-residents deposits , liabilities in foreign currency from: income tax on interest earned, required reserves imposed banque du liban virtue of article 76 of code of money , credit, premium of deposit guarantee imposed on bank deposits profit of national deposit guarantee institution.