According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon fell by 5.21% in 2022 to $3.80 billion, down from $4.01 billion at end of 2021. In details, claims on the private sector (comprising resident and non-resident customers) fell by 7.92% in 2022 to $1.48 billion, coupled with some 2.79% drop in cash and deposits with Central Banks to $1.29 billion, a 39.30% contraction in claims on the non-resident financial sector to $36 million and a 4.40% drop in the value of the securities portfolio to $557 million, altogether outweighing the 20.41% increase in the value of other assets to $92 million. On the liabilities side, private sector deposits (resident and non-resident customers, in addition to the resident financial sector) dropped by 14.06% in the year 2022 to $958 million and other liabilities contracted by 14.70% to $984 million, totally offsetting the 4.63% increase in investment banks’ capital accounts to $1.66 billion, the 571.08% rise in liabilities to public sector to $33 million and the 15.09% increase in liabilities to the non-resident financial sector to $172 million.

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 $1.48 billion by end of 2022.