Lebanese Banks Worry Capital Increase Deadline Is Too Tight

Lebanon’s banks are worried that a central bank deadline for compulsory capital increases is too tight as they grapple with the fallout from weeks of anti-government protests, banking sources familiar with the matter said, Reuters reported. They said it was possible lenders might ask the banking regulator for an extension to the requirement to raise their Common Equity Tier 1 capital, a key measure of financial strength, by 10% through cash injections by the end of the year. The central bank did not respond to a request for comment. Banks had in the past proven their capability to raise capital and attract deposits when needed, said Salim Sfeir, chairman of the Association of Banks in Lebanon, which represents more than 60 banks. “However, this is contingent to the political stability in the country,” he said in a written response to questions from Reuters. Read more