According to Banque Du Liban (BDL) statistics, the combined balance sheet of investment banks operating in Lebanon rose by 178.81% during the first eleven months of 2023 to LBP 15,978 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 2023. In details, cash and deposits with Central Banks soared by 178.59% to LBP 5,432 billion, coupled with some 87.40% rise in claims on the private sector (comprising resident and non-resident customers) to LBP 4,186 billion and a 182.19% increase in the value of the securities portfolio to LBP 2,368 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 463.52% YTD November 2023 to LBP 8,138 billion, with investment banks’ capital accounts increasing by 57.05% to LBP 3,918 billion and other liabilities rising by 81.80% to LBP 2,698 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 4,185 billion.