Circular No. 136 - Banking Control Commission of …

1 Banking Control Commission BANQUE DU LIBAN Beirut, November 19, 1990 Circular No. 136 Addressed to Banks Operating in Lebanon Subject: Information to be reported by Banks to the BCC In accordance to Article 9 of Law 28/67 dated 9 May 1967, and with the desire of the BCC to get periodic and regular information about the development of the business operations of a Bank, in order to be able to closely supervise it, and in order to facilitate and simplify the task of the Bank when providing the above mentioned required information: The BCC requires all Banks to provide the following information: First : The information to be reported on a monthly basis.

2 This information should be sent to the BCC on a monthly basis no later than 20 following the end of the previous month. 1- The balance sheet of the Head Office and branches operating in Lebanon on a consolidated basis. 2- The balance sheet of each branch operating outside Lebanon. 3- The consolidated Balance sheet of the Head Office and branches operating in Lebanon and abroad. 4- The monthly consolidated trial balance of Head Office and branches operating in Lebanon. 5- The monthly consolidated trial balance of and Head Office branches operating in Lebanon and abroad. 6- Details of the Bank s accounts with resident and non-resident banks (Forms 2-a and 2-b) 7- Details of the Bank's accounts with Head Office, branches abroad, mother company, sister and subsidiary banks and financial institutions abroad.

3 8- The net daily foreign exchange position. 2 9- A schedule of the excess over the lending limit according to DBL Circular and BCC Circulars (Form 8) Second : The information to be reported on a quarterly basis: The information below is to be reported to the BCC on a quarterly basis before day 20 of the months following months 3, 6, 9 and 12 of every year for the Head Office and branches operating in Lebanon. 1- The BCC requires the amount of deposits and loans of clients in Lebanese Pounds and in foreign currencies translated in Lebanese currency. In addition to a list of revenues and expenses of the Management, Head Office, and every branch operating in Lebanon.

4 (Form 9) 2- The schedule of the distribution of loans according to different categories of collaterals. (Form 10) 3- The schedule of brackets of loans in LBP (Form 11-a) 4- The schedule of brackets of loans in foreign currencies translated in LBP (Form 11-b) 5- The schedule of the brackets of deposits in LBP (Form 3-a) 6- The schedule of brackets of deposits in foreign currencies translated in LBP (Form 3-b) Third : The information to be reported on a semi -annually basis: The BCC requires banks to send the information below on a semi - annual basis before the 20th of the months of July and January of every year, for the Head Office and branches operating in Lebanon 1- A schedule of the provisions taken against doubtful loans in LBP (Form 4-a) 2- A schedule of the provisions taken against doubtful loans in foreign currencies converted in LBP (Form 4-b) Fourth : The information to be reported on a yearly basis: A-The BCC requires banks to provide the information on a yearly basis before the end of January of the following year.

5 1- A list of branches of a Bank (form 5) 2- Reporting by the Bank about the clients operating in the free zone according to 3 Decree (dated April 1, 1975) and Decree (dated February 5, 1977). (Form 6) 3- A list of the names of its shareholders, of its Board of Directors and of its external auditors. (Form 12) 4- A list of the names of the companies affiliated to the Bank, sister companies, and subsidiaries in Lebanon and abroad in which the Bank participation is not less than 20% - this schedule is required from Lebanese banks only (Form 13) 5- A list of real estate acquired by the Bank in accordance with Article 153 of Code of Money and Credit.

6 (Form 14-a) 6- A list of real estate acquired by the Bank in accordance with Article 154 of Code of Money and Credit. (Form 14-b) B: The BCC requires banks to report the following information on a yearly basis before the end of June of the subsequent year: 1- Consolidated financial statements, and the profit and loss statement audited by the external auditor for the Head Office and branches operating in Lebanon and abroad. 2- Consolidated financial statements, and the profit and loss statement audited by the external auditor for the Head Office and branches operating outside Lebanon and for each branch individually. 3- Consolidated financial statements, and consolidated profit and loss statement, audited and to be published for Head Office and branches operating in Lebanon and abroad.

7 4- A schedule of the brackets of LBP deposits account per branch for the foreign operating branches of Lebanese banks. (Form 3-a) 5- Schedule of the brackets of deposits in foreign currencies for branches of Lebanese banks operating abroad according to (form 3-b), for each branch separately. 6- Individual audited balance sheet for banks and sister or affiliated financial institutions, and balance sheet of the banks and financial institutions that are tied to Lebanese banks by ownership or management. 7- Final balance sheet, audited profit and loss statement for the mother company, all external auditor reports and minutes of the General Assembly meeting.

8 Fifth : Other Information: 1- The minutes of meetings of the ordinary and the extraordinary general assembly, in addition to the minutes of the meeting of the Board of Directors. 4 2- Reports of the Board of Directors submitted to the general assembly. Banks are supposed to send the minutes of the meetings and the reports within 15 days of their completion. Branches of foreign banks are exempted from sending the above mentioned minutes and reports, except for matters concerning the branches of these foreign banks in Lebanon. Sixth : The banks should use the Forms attached to this Circular these are not to be photocopied.

9 The banks can obtain these Forms from BDL. Seventh : This Circular replaces BCC Circular (dated December 5, 1985); it will become effective starting from September 30, 1990. For the Banking Control Commission Mohamad AL-Baasiri 5 * On 10/12/1992 the BCC issued Circular No. 158 requiring all banks to start sending some of the required information on 2 floppy discs in addition to the regular print outs. This new procedure was put in effect on December 1992. Several other Forms were required by the BCC at later dates by several memos and circulars.

10 These new Forms are: - Special and structural foreign exchange position (1-1) - Net foreign exchange position- consolidated (1 -T) - Special and structural foreign exchange position- consolidated (1 - S) - Maturities for liquidity purposes (2 - c) - Maturity for some assets and off-balance sheet items (2 - d) - Bank accounts with financial institutions (2 - j) - Purchase of securities from unrelated & related parties (2-l & 2-r) - Sub-standard loans in LBP and foreign currencies (4-c &4-d) - Bad loans in LBP and foreign currencies (4-e &4-f) - Classification of loans according to their risk (4-g) - Doubtful loans in foreign currencies with provisions in LBP (4-m) - Bad loans in foreign currencies with provisions in LBP (4-n) - Bad loans 100% provisioned for in LBP and foreign currencies (4-r &4-s) - Changes in top management (12-d) - Portfolio of securities for trade and investment (13-d) - Fixed assets other than real estates (14-c) - Real estate acquired with expired date of liquidation (14-f) - Debt notes factoring in purchased foreign currencies (15-a) - Facilities to Financial Institutions for debt noted factoring purchases (15-c) - Facilities to Mutual Funds for debt notes factoring purchase in foreign currencies (15-d) - Legal disputes (16-a) - Lawyers of the banks (16-b)