The Lebanese Banking authorities announced that Lebanese banks will apply the Basel II accord requirements, but with some specific different measures.
The enforcement date of the Basel II accord was fixed for January 1st
, 2008. As such several regulatory and instructional texts were developed and released to the banking sector.
In accordance with Pillar 1 of Basel II, the coverage of risks using equity capital is applied by Banque Libano-Française as follows:
- the "standardized approach" for credit risk,
- the "standardized" approach for market risk,
- the "basic indicator approach" for operational risk.
At the same time, Banque Libano-Française continues to implement necessary measures to adopt the most advanced calculation methods. It continues to effectively implement risk management procedures and directives, which comply with the requirements of Pillar 2 of the Basel Accord and with the requirements of corporate governance.