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Overview of the Lebanese Economy and Banking Industry. Presentation to the delegation of The Banks Association of Turkey. Beirut- December 3, 2010 Dr. Makram Sader Secretary General Association of Banks in Lebanon. I- Economic Growth II- Public Finances III- External Accounts
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Overview of the Lebanese Economy and Banking Industry Presentation to the delegation of The Banks Association of Turkey Beirut- December 3, 2010 Dr. MakramSaderSecretary General Association of Banks in Lebanon
I- Economic Growth II- Public Finances III- External Accounts IV- Financial Intermediation
Real Sector Indicators Sources: IMF Article IV- BDL- Economic Accounts of Lebanon- Lebanese customs.
Aggregate Demand and Supply USD billion and % Source: Lebanon's Economic Accounts 2008
Public Finances Sources: MOF, BDL *Adjusted to include all telecom revenues.
Total debt structure in % Source: BDL Public debt holders* in % * Estimations
Balance of Payments million USD * Estimates - IMF Article IV ** Projections- IMF Article IV *** For Information Sources: IMF- BDL- ABL
Consolidated Balance Sheet of Commercial Banks million USD - End of period Source: BDL
Consolidated Balance Sheet of Commercial Bankschange in % Source: BDL
Dollarization • The net trading position against the Lebanese pound must not exceed 1% of shareholder's equity while the global position cannot exceed 40% of shareholder's equity . • A structural position of 60% of shareholder's equity is authorized to hedge the capital in LBP against fluctuations in the exchange rate . • Banks are required to maintain at least 10% of their foreign currency liabilities as net liquid assets and at least 15% as required and remunerated deposits in FC at BDL . in % Source: BDL
Weighted Average Spread (LBP and FC Markets) Source: BDL
Indicators of the Lebanese Banking Sector Performance * Cash and deposits at BDL + Treasury bills in LBP & Eurobonds ( with less than 1 year maturity) + foreign assets (excluding claims on non-resident private sector)
Financial Soundness Indicators- Regional comparison (latest available) (1)Latest figure: Net Problem Loans/Net Total Loans- IMF Article IV Oct. 2010. (2) Includes provisions against problem loans and general provisions. (3) after taxes. Source: Global Financial Stability Report/IMF, October 2010.
Bank Revenue Composition in % of total- 2009 Source: R. Ariss' calculations from Bankscope.
Selected Indicators on the Size of the Capital Markets, 2009 (In billions of U.S. dollars unless noted otherwise) Source: Global Financial Stability Report/IMF, October 2010. a- Includes Euro area countries, Denmark, Sweden and UK. b- Hong Kong, Korea, Singapore and Taiwan province of China. c - Commercial banks balance sheet
Selected Indicators on the Size of the Capital Markets, 2009 Structure and percentage of GDP Source: Global Financial Stability Report/IMF, October 2010. *includes Euro area countries, Denmark, Sweden and UK. * Hong Kong, Korea, Singapore and Taiwan province of China.