According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon rose by 224.23% during the first five months of 2023 to LBP 18,581 billion, up from LBP 5,731 billion at end of 2022. This large increase can be explained by the adoption of the new official exchange rate of LBP 15,000 per USD starting the month of February. In details, claims on the private sector (comprising resident and non-resident customers) soared by 158.97% to LBP 5,784 billion, coupled with some 183.69% rise in cash and deposits with Central Banks to LBP 5,531 billion and a 315.28% increase in the value of the securities portfolio to LBP 3,485 billion only to name a few. On the liabilities side, private sector deposits (resident and non-resident customers, in addition to the resident financial sector) rose by 451.29% YTD May 2023 to LBP 7,961 billion, with investment banks’ capital accounts increasing by 148.48% to LBP 6,199 billion and other liabilities rising by 118.11% to LBP 3,236 billion, only to name a few.

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 LBP 5,739 billion.