BEIRUT: Lebanese banks are flush with liquidity and the capital adequacy ratio is even higher than the ceiling set by Basel III, the head of the Association of Banks in Lebanon said Friday.
“The managers of Lebanese banks have maintained high liquidity, especially in foreign currencies [30 percent of deposits are in foreign currency] to protect the sector from any crisis,” Joseph Torbey told participants in a conference at Coral Beach Hotel.
He added that the policy had proven sound despite its high cost.
Torbey noted that many leading international banks had collapsed in recent years because they failed to boost their liquidity, citing Cypriot lenders as examples.
“In this field, we can assure that the Lebanese banking sector has comfortable special cash that far exceeds the ratio set by the Basel committee,” he said.
Torbey added that the European Union and the United States still have to officially achieve the Basel III capital adequacy ceilings.
“There is a general impression in the world that the Lebanese banking sector is safe and sound and dealing with it is guaranteed,” Torbey argued.
Central Bank Vice Governor Saad Andary called on all banks to secure sufficient liquidity and assets to deal with pressing crisis.
