Moody’s praises banks for their high liquidity. Deposits are growth driver, but pressure on profitability, credits, and asset quality lead to negative outlook

The banking system's funding strengths are expected to remain, along with possible improvements in capitalization, said Moody's Investors Service in a report published yesterday.

The rating agency said banks will continue to grow their stable deposit funding bases over the outlook period. Customer deposits represent more than 80 percent of system liabilities and are supported by inflows of remittances from the diaspora, which is equivalent to 15-20 percent of the Gross Domestic Product (G...

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Insurance premiums will grow by 25 percent till 2017. Regional stability would find new growth opportunities for insurance companies

Insurance premiums are expected to grow at an annual average between 20 percent and 25 percent in the upcoming two years, up from an annual average of five percent to six percent currently, according to experts in the industry.

"The insurance sector is still well-performing compared to other countries in the region, due to continuous confidence in the economy, availability of high skilled human resources and increase in awareness about insurance," said Assaad Mirza, former Chairman of Ass...

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Public debt to reach $75 billion in 2016. Public debt to reach $75 billion in 2016

As fiscal deficit remains high, public debt is increasing at an annual average ranging between $4 billion to $5 billion, which will push it to $75 billion in 2016.

"Public debt is expected to reach this level with the continuous increase in spending," said Former Finance Minister Jihad Azour. Total budget deficit reached $2.48 billion in 2014, up by 40 percent compared to 2013, according to the Ministry of Finance (MoF). Total expenditures rose to $12.2 billion in 2014, up by 15 percent. ...

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New LL50,000 bill to be released. The special paper currency will be in circulation starting August 1

The Central Bank (BDL) has issued a the new design for the LL50,000 paper currency, in celebration of the 70th anniversary of the Lebanese Army.

These bills, which will be put in circulation as of next month, are signed by BDL Governor, Riad Salameh and First Vice-Governor, Raed Charafeddine.

The size of these paper currencies, which have a dominant blue color, has remained unchanged.
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Central Bank reserves stand at $39 billion. More stability of the monetary policy and currency, and more confidence in the banking sector

The Central Bank (BDL) reserves in foreign currencies reached $38.8 billion at the end of the first half of 2015, up by around 15 percent from the same period last year, according to figures published by BDL. These reserves exceeded $39 billion in mid July.

"These high reserves are strengthening the balance sheet of the BDL in a way as to make it better able to intervene in the foreign exchange market and guarantee more stability of the lira and interest rates," said Muhammad Baasiri, th...

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Income tax evasion up to $1.9 billion yearly. Recouping it would pay off half the deficit

Out of a potential income tax of $2.9 billion per year, the public Treasury is only grossing one third, according to a study by Bank Audi, which claims that this brings income tax evasion to $1.9 billion per year.

Marwan Barakat, Head of Research at Bank Audi, said: "The uncollected income tax represents the largest contributor to tax evasion. There is also delinquency in payment of some electricity bills and under-declaration of the value of real estate transactions, leading to lower reg...

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