Banks called to up deposits

Salameh: limited impact on Lebanese banks in Syria

The governor of the Central Bank, Riad Salameh, called on banks to increase their deposits, even if at the expense of growth in their profits. Salameh said that between 2009 and 2011, banks shifted the deployment of their funds more towards the private sector. He said that loans offered by banks to the private sector have reached $26.7 million, whereas loans to the public sector dropped to $18.7 million.
Salameh said that the impact of the turmoil in Syria on Lebanese banks operating there will be limited. He said that according to the Central Bank’s estimates, the growth in profits of these banks will endure a slowdown of not more than 15 percent. “We are not as worried now as we were last spring, thanks to the provisions of banks (operating in Syria allocated to mitigate risks),” he said. The combined assets of Lebanese banks in Syria totaled $5.8 billion at the end of 2011, posting a drop of 17.2 percent from end-2010. Salameh said that the Central Bank asked the Syrian affiliates of Lebanese banks to undertake monthly stress tests and allocate general provisions.