- Advertising Agencies
- Architects

- Banks

- Car Dealers
- Car Rental
- Casinos
- Commerce
- Consulting
- Cosmetology
- Craft

- Data Processing &
Computer Systems
- Decoration &

- Editing
- Elementary Schools
- Engineering &
- Environment / Waste
Management Services
- Express Delivery

- Fashion
- Financial Services
- Food & Beverage
- Furnished Apartments

- Health / Beauty
- Higher & Vocational
- Home Appliances
- Hotels 3
- Hotels 4(A)
- Hotels 4(B)
- Hotels 5
- Hotel & Restaurant

- Industry
- Insurance
- Interior Design /
- Internet

- Jewelleries

- Lighting
- Luxury

- Media
- Music

- Office Equipment /
- Oriental Carpets
- Outside Decoration

- Printing
- Promotional Materials

- Real Estate
- Recruitment
- Restaurants

- Sanitary Wares
- Security
- Services
- Sweets

- Taxi
- Telecommunication &
Mobile Phones
- Transport
- Travel Agencies
- Technical Studies

- Watches
- Water Treatment



Back to archives Back to news
French Version

Salameh : Lebanon 'committed' to implementing Basel II

Analysts warn not all banks can meet tough conditions

Central Bank Governor Riad Salameh said Lebanon is committed to implementing Basel II to ensure better transparency in the banking sector.

"From now on its no longer acceptable for the stakeholders (i.e: shareholders, clients and staff) to be taken by surprise due to the withholding of information and lack of transparency by banks," Salameh told a conference on Bank Risk Management that took place in Beirut.

Basel II, which will be implemented in 2006 and 2007, aims at reducing all risks by commercial banks through a series of measures such as increasing the paid-up capital and investing more money in training of staff to handle all operational risks.

"Basel II has assured that banks are subject to numerous risks such as loan and credit risks as well as market risks. Other risks involve operational and bad reputation."

Lebanese banks, with assets of more than $67 billion, have successfully complied with the capital adequacy ratios.

But some analysts believe that not all Lebanese banks may be able to meet the tough conditions of Basel II because this requires additional investments and higher capitals.

Salameh said that Basel II also require that banks increase capitals and to develop the internal banking supervision.

He added that Basel II measures will allow banks to improve the return on equity.

Salameh stressed that banks should also abide by the corporate governance principles.

The governor said the Central Bank succeeded in its mission despite the fact that Lebanon's credit ratings are relatively low due to the risks posed by the high public debt.

Moody's and other international credit agencies are urging Lebanese banks to reduce the $36.8 billion public debt in order to reduce foreign currency credit risks.

Lebanese banks are the biggest lenders to the government, which resorts to the issuance of treasury bills and Eurobonds to finance the public debt.

Walid Alameddine, the chairman of the Banking Control Commission, also underlined the importance of Basel II.

"Lebanese banks have continued to develop themselves and I expect that total capitals of more than $500 million in 2005," Alameddine said.

But Alameddine said that there is one criterion out of 30 which Lebanese banks are not implementing.

This criterion calls for granting immunity powers to all members of the Banking Control Commission.

He added that the International Monetary Fund mentioned in its report in 2001 that this time it is the only weak point in the banking supervision system in Lebanon.

Alameddine said he will propose to the finance minister to give legal immunity to the Banking Control Commission.

Beirut 21-11-2005
Osama Habib
The Daily Star

Business News
Business Forum
Business Opportunities
Fairs & Exhibitions
Useful Addresses
Currency Exchange Rates
Some Marks
To see in Lebanon
Media of 1stlebanon
Impact of 1stlebanon
Add your company
Press Book
Flowers delivery Lebanon
Flowers delivery Dubai
Oriental food specialty
Lebanese wine
Real estate agency Beirut
Hotel Hamra-Beirut
Car rental
Rent a car lebanon
Reservation for your travel in Lebanon
Association des français de l'étranger
-section Liban
Diamond jewelry Lebanon
Jewelry manufacturer Lebanon
Jewelry watches-Swiss made watches
Diamond Swiss watches
Modern and comtemporary jewelry
Byzantine & Phoenician jewelry
Jewelry creation
Oriental, classical and traditional decoration
Hand made furniture
Construction management Lebanon
Projects development
Shoes manufacturer and distributor Lebanon
Sole agent of Philips & Whirlpool in Lebanon
Web development
Web marketing
Printing press services
Paper products
Insurance company Lebanon
Insurance Lebanon
Rent villas France
Hotels all over Syria
Hotel management company
University Lebanon
Arab Media News