Lebanon’s Central Bank issued intermediate Circular 679 modifying basic decision 13100 on Tuesday October 03, 2023 by which it advises banks to regulate their commissions charged on customers’ accounts.
In more details, BDL urged banks to refrain from imposing new fees on deposits, a practice that had been in effect prior to October 31, 2019. Additionally, the Central Bank called upon financial institutions to prepare a comprehensive document outlining precise and in-depth details regarding the fees associated with customer accounts, the methodology used for calculations, and the procedure for fee collection. This measure aims to ensure that no undisclosed charges are imposed on customers.
Banks typically aim to adapt to regulatory changes in a way that allows them to continue providing services to customers while remaining compliant with the Central Bank’s guidelines. The specific reaction of banks can vary depending on their size, business model, and the extent of the changes introduced in basic decision no. 13100. This is especially the case since commissions represent the main source of income to banks, given the dearth of provide and public loans.
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