According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon widened by 3.73% during the first eleven months of 2019 to nearly $5.50 billion, up from $5.30 billion at end of 2018. In details, cash and deposits with central banks soared by 24.31% to just over $1.93 billion, eclipsing as such the 5.07% drop in claims on the private sector (comprising resident and non-resident customers in addition to the resident financial sector) to $2.18 billion, the 10.57% contraction in the securities portfolio to $896 million, among others. On the liabilities side, private sector deposits (resident and non-resident customers, in addition to the resident financial sector) fell by 6.31% YTD November to around $1.92 billion, accompanied by a sharp 46.37% drop in liabilities to the public sector to $58 million, outweighed by a 3.28% increase in investment banks’ capital accounts to $1.73 billion and some 28.77% hike in other liabilities to about $1.56 billion.

Abiding by legislative decree number 50 and subsequent BDL circulars, investment banks operating in Lebanon have managed over the last couple of years to increase their lending activity to the private sector while reducing their exposure to the public sector. As a result, the surplus representing the difference between loans to the private sector and claims on the public sector reached $2.17 billion up until the month of November 2019.