Download or read book Lebanon written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2017-01-25 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses findings of the assessment of Lebanon’s financial system. Lebanon has maintained financial stability for the last quarter century during repeated shocks and challenges. Over time, macroeconomic and financial vulnerabilities have accumulated. Although central bank policies have helped to maintain confidence, fiscal adjustment is needed to reduce risks to financial stability. The banking system has thus far proven resilient to domestic shocks and regional turmoil, but the materialization of severe shocks could expose vulnerabilities. Significant progress has been made to further strengthen Lebanon’s financial integrity framework, with some scope for improvement remaining.
Download or read book Capital Adequacy of Lebanese Banks written by Hani Wafa and published by . This book was released on 1995 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Adequacy of Lebanese Banks written by Ibtissam Mohamad Soubhi El-Ayoubi and published by . This book was released on 1990 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Basel Capital Requirements and Credit Crunch in the MENA Region written by Mr.Sami Ben Naceur and published by International Monetary Fund. This book was released on 2013-07-03 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this requirement may have caused a “credit crunch,” a significant reduction in the supply of credit. We investigate the direct link between the implementation of the Basel I Accord and lending activities, using a data set spanning annual observations covering 1989–2004 for banks in Egypt, Jordan, Lebanon, Morocco, and Tunisia. The results provide clear support for a significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital adequacy ratios, banks expanded credit and asset growth. Credit growth appears to be driven by demand fluctuations attributed to real growth, cost of borrowing, and exchange rate risk. Overall, the effects of macroeconomic variables, in contrast to capital adequacy, appear to be more dominant in determining credit growth, regardless of the capital adequacy ratio, and regardless of variation across banks by nationality, ownership, and listing.
Download or read book The Optimal Level of Capital Adequacy of Lebanese Banks written by Abbas Maarouf Kesserwan and published by . This book was released on 1993 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Implementation of the Basel II Capital Accord written by Mazen Oussama Baba and published by . This book was released on 2010 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Basel II, the successor of Basel I, represents the new way to evaluate banks' capital adequacy. In a period when banks are consolidating, expanding on the local, regional, and global front, and engaging in complex transactions using innovative financial instruments, Basel I is clearly outdated. In this paper I use the standardized approach for measuring the credit and market risk and the basic indicator approach for measuring the operational risk of eight Lebanese banks according to Basel II guidelines. The main aim of this research is to compare these banks' capital adequacy ratios for the year 2007 calculated using Basel I and Basel II methodology and analyze the effect of using the new approach. The results reveal that the effect the Basel II approach has on the banks' capital adequacy varies among banks. The capital adequacy ratio (CAR) has increased, decreased, or remained relatively unchanged depending on each bank's asset portfolio composition. All of the banks in this case study were adequately capitalized even by Basel II standards although most of their Basel II CAR ratios were significantly less than their Basel I counterparts. Consequently, no action is necessary on behalf of the banks to increase their capital or lower their risk.
Download or read book Determinants of Leverage Return on Assets Operational Efficiency and Capital Adequacy in Lebanese Banks written by Dima Hardan and published by . This book was released on 2014 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Adequacy of Commercial Banks in Lebanon written by Mivat K. Salam and published by . This book was released on 1991 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Performance of Banks in Post War Lebanon written by David W. Peters and published by . This book was released on 2004 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the performance and balance-sheet characteristics of banks in post-war Lebanon for the years 1993 to 2000. Although we find that Lebanese banks are profitable, most of them had accounting return on assets (ROA) greater than one percent over most of our test period, they are not as profitable as a control group of banks from five other countries located in the Middle East. Bank safety and soundness in Lebanon has increased as leverage was reduced (capital adequacy improved) and a risk index indicates lower probabilities of book-value insolvency. We attribute this improved bank performance and safety to better management and to three external factors: political (cessation of war), economic (lower inflation), and regulatory (BIS capital requirements). We employ regression models that relate bank profitability ratios to various explanatory variables. We find, for example, that ROA is positively associated with lagged growth in real GDP, spread or net interest margin, and holdings of Lebanese T-bills but negatively related to bank size as measured by the natural log of total assets. As a policy implication, we recommend that Lebanese banks increase their lending to the private sector to achieve a more efficient allocation of resources and to stimulate economic growth. To help achieve this objective, Banque du Liban, the central bank, should abandon its practice of setting T-bill rates above market levels, which provides a disincentive to bank lending.
Download or read book The Bank of Lebanon written by Abdul-Amir Badrud-Din and published by Pinter Publishers. This book was released on 1984 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Corporate Governance and Political Connectedness on the Financial Performance of Lebanese Banks During the Financial Crisis of 2019 2021 written by Hani El-Chaarani and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Lebanese banking sector has become risky due to political and economic crises. At such times, corporate governance meJournal of Risk and Financial Managementchanisms ensure objectivity of assessment and rationality in decision making. We examine the impact of internal corporate governance mechanisms on the performance of Lebanese banks, with political involvement in the administration and ownership of the banks. We used linear regression on a sample of 194 bank-year observations from 2016 to 2021.The presence of independent members on boards of directors, and ownership concentration due tofamily ownership, had positive effects on bank return on assets, return on equity, liquidity levels, and loans issued. Efficient control, along with the presence of audit, and compliance committees reduced risk by increasing capital adequacy and reducing non-performing loans. Both administrative political connections and ownership political connections increased return on assets, increased return on equity, increased liquidity levels, and increased loans to deposits, while increasing non-performing loans. Agency conflicts suggest that granting loans due to political pressure increased non-performing loans.
Download or read book Measuring Assessing and Comparing Basel I II III on a Portfolio of Loans Allocated by a Lebanese Bank to SMEs written by Celine Bou Abdo and published by . This book was released on 2017 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: The objective of this thesis is to estimate and compare the capital requirements of an SME portfolio belonging to a Lebanese Commercial Bank under different regulatory frameworks, Basel I, Basel II and Basel III, in addition to illustrating the calculation of the capital adequacy ratio to comply with the requirements of BDL and BCCL. Design/methodology/approach: The sample used consists of a portfolio of loans granted by a Lebanese commercial bank to 1,099 different clients as of June 30, 2017. The study aims first at demonstrating the several approaches (Standardized Approach, IRB Approach, with and without supporting factor approach) that calculate the capital requirements under Basel Accords and second revealing the steps applied in order to implement the procedure following the BCCL Requirements. Findings: The findings of the study revealed that the theoretical models do not comply with the real facts. Moreover, it showed that the introduction of the supporting factor to Basel III has a positive impact on the credit lending for SMEs and a negative impact on the bank by not having sufficient capital to face stressed economy. Research limitations: One of the limitations of this study is the lack of transparency of the Lebanese banking sector. Another limitation is related to the credit risk management procedure implemented by the bank. Practical implications: The results of this research draw a comparative approach between the theoretical part (Basel Accords) and the credit risk management procedure applied in Lebanon under the BCCL requirements. Originality/value: This study is the first academic paper that tackles in details the implementation of a credit risk management procedure as per BCCL requirements, through a concrete Lebanese bank portfolio of loans.
Download or read book The Capital Adequacy of Commercial Banks written by Philip J. Hahn and published by . This book was released on 1968 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Capital Adequacy Ratios Under Basel III written by Tarek Ibrahim Eldomiaty and published by . This book was released on 2016 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this paper is to (a) present an empirical evidence that explains bank internal financial ratios that influence capital adequacy ratio, (b) stress testing the impact of Basel III capital adequacy requirements on Egyptian banks, and (c) offer a road map, through a sensitivity analysis, to bank management regarding the implementation of the stress tests results. The data covers the period from 2010 to 2014 on a quarterly basis. The discriminant analysis is used for testing the robustness of the estimation. Stress testing is utilized based on the estimates the variables that meet Basel III new requirements of Capital adequacy ratio.The results show that (a) return on assets, return on equity, and asset-based market share have significant effects on capital adequacy ratio, (b) the ratios of loans/deposits and non-performing loans have positive significant effects on capital adequacy ratio, (c) the liquidity ratio in US $ has trivial effect on capital adequacy ratio, (d) liquidity ratio in Egyptian pound has insignificant effect on capital adequacy ratio, (e) the ratios of loans/deposits, non-performing loans and liquidity in U.S. $ are robust and significance determinants of capital adequacy ratio. In terms of stress testing, the results show that (a) the average optimal value for loans/deposit ratio is expected to increase to 0.7807 from the current level of 0.4663, (b) the average optimal value for non-performing loans is expected to increase to 0.2174 from the current level of 0.1010 and (c) the average optimal value for liquidity ratio in U.S $ is expected to increase to 1.0 from its current level of 0.5383.
Download or read book Capital adequacy and earnings of commercial banks in deregulation written by Michael Charles Smith and published by . This book was released on 1984 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Credit Risk Models written by Abir Issam Baz and published by . This book was released on 2005 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Basel II Accord is one of the key challenges facing the banking industry ove r the next few years, as it will change the way in which banks calculate their r egulatory capital by aligning the quantitative measure of capital adequacy with the true underlying risk exposure. The new accord creates incentives among banks for bett er risk management and control by providing advanced banks with appropriate risk systems the freedom to manage their own risk and set their own capital requirements accordin g to their own internal and historical default data. As a result, credit risk modelling has become such a focus of interest for banks and financial institutions who search to measure credit risk by implementing a variety of credit value-at-risk models. The objective of this paper is to shed the light on three industry benchmarks fo r assessing portfolio credit VAR: CreditMetrics, CreditRisk+, and the KMV model. The paper presents the major considerations addressed by banks when deciding on the best measurement system to implement as well as the major challenges faced i n the implementation. Finally, a glance at Lebanese banks reveals that they are still at an early stag e in the configuration of their credit risk systems.
Download or read book ICT for an Inclusive World written by Youcef Baghdadi and published by Springer Nature. This book was released on 2020-01-30 with total page 597 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the impact of information and communication technologies (ICTs) on organizations and on society as a whole. Specifically, it examines how such technologies improve our life and work, making them more inclusive through smart enterprises. The book focuses on how actors understand Industry 4.0 as well as the potential of ICTs to support organizational and societal activities, and how they adopt and adapt these technologies to achieve their goals. Gathering papers from various areas of organizational strategy, such as new business models, competitive strategies and knowledge management, the book covers a number of topics, including how innovative technologies improve the life of the individuals, organizations, and societies; how social media can drive fundamental business changes, as their innovative nature allows for interactive communication between customers and businesses; and how developing countries can use these technologies in an innovative way. It also explores the impact of organizations on society through sustainable development and social responsibility, and how ICTs use social media networks in the process of value co-creation, addressing these issues from both private and public sector perspectives and on national and international levels, mainly in the context of technology innovations.
