According to Lebanon’s consolidated commercial banks’ balance sheet, total assets decreased annually by 33.32% to stand at $115.15B by March 2023 amid BDL’s adoption of a new exchange rate of LBP 15,000 per USD.
On the assets side, currency and deposits with Central Bank represented a high figure of 74.2% of total assets; they dropped annually by 24.2% to settle at $85.44B in March 2023. Deposits with the central bank (BDL) represented 99.14% of total reserves, and decreased by 23.01% YOY, to reach $84.7B in March 2023. Furthermore, Vault cash in Lebanese pound fell by 72.72% on a yearly basis to stand at $738.6M by the same period. The drop is attributed to the calculation based on the new official exchange rate of LBP 15000 per USD.
Claims on resident customers, constituting 7.51% of total assets, shrank significantly by 62.49%, to stand at $8.65B in March 2023. Moreover, Resident Securities portfolio (6.12% of total assets) dropped by 58.69% in March 2023 to stand at $7.05B. More specifically, the Eurobond holding recorded a decline of 37.98% since March 2022, to reach $2.82B by end of March 2023. Additionally, claims on non-resident financial sector increased by 1.04% YOY to stand at $4.13B by March 2023.
On the liabilities side, resident customers’ deposits were the main account, representing 65.11% of total liabilities; they decreased by 26.95% since March 2022 to reach $74.97B in the month of March 2023. In more details, deposits in foreign currencies (95.8% of resident customers’ deposits) decreased by 7.82% YOY to reach $71.82B by March 2023, additionally deposits in LBP (4.2% of resident customers’ deposits) fell by 87.27% YOY to stand at $3.15B by March 2023. Noting that Lebanon has become dollarized and cash based.
As for Non-resident customers’ deposits, grasping 18.65% of total liabilities, they recorded a drop of 10.84% and stood at $21.48B in March 2023. In details, the deposits in LBP fell by 89.45% to reach $210.63M and deposits in foreign currencies declined by 3.74% to reach $21.27B over the same period. In addition, Non-resident financial sector Liabilities held 2.81% of total Liabilities and decreased by 26.77% YOY to reach $3.24B in March 2023. More importantly, the dollarization ratio for private sector deposits increased from 78.68% in March 2022 to 96.42% in March 2023.
Commercial Banks Assets and Residents Customer Deposits by March 2023 ($B)
Source: BDL, BLOMINVEST
This article is a research document that is owned and published by Blominvest Bank SAL.
No material from this publication may be modified, copied, reproduced, repackaged, republished, circulated, transmitted or redistributed directly or indirectly, in whole or in any part, without the prior written authorization of Blominvest Bank SAL.
The information and opinions contained in this document have been compiled from or arrived at in good faith from sources deemed reliable. Neither Blominvest Bank SAL, nor any of its subsidiaries or affiliates or parent company will make any representation or warranty to the accuracy or completeness of the information contained herein.
Neither the information nor any opinion expressed in this research article constitutes an offer or a recommendation to buy or sell any assets or securities, or to provide investment advice.
This research article is prepared for general circulation and is circulated for general information only.