According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon widened by 0.32% during the first four months of 2022 to $4.02 billion, up from $4.01 billion at end of 2021. In details, cash and deposits with Central Banks rose by 8.80% YTD April 2022 to $1.45 billion, coupled with some 14.76% appreciation in the value of other assets to $88 million, altogether outweighing the 6.49% drop in claims on the private sector (comprising resident and non-resident customers) to $1.51 billion, the 16.18% drop in claims on the non-resident financial sector to $49 million and a 0.58% decrease in the value of fixed assets to $348 million. On the liabilities side, investment banks’ capital accounts rose by 6.13% in the first four months of 2022 to $1.68 billion and liabilities to the non-resident financial sector increased by 5.48% to $157 million, outweighing the 5.63% drop in private sector deposits (resident and non-resident customers, in addition to the resident financial sector) to around $1.05 billion and the 2.20% contraction in other liabilities to $1.13 billion not to mention the total elimination (reimbursement) of previously issued debt securities.

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 $1.50 billion by end of April 2022.