According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon rose by 192.53% during the first nine months of 2023 to LBP 16,764 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 92.00% to LBP 4,289 billion, coupled with some 187.69% rise in cash and deposits with Central Banks to LBP 5,609 billion and a 247.96% increase in the value of the securities portfolio to LBP 2,920 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 472.16% YTD September 2023 to LBP 8,263 billion, with investment banks’ capital accounts increasing by 63.64% to LBP 4,083 billion and other liabilities rising by 115.81% to LBP 3,202 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 4,244 billion.