The Lebanese banking sector shows little structural change in its consolidated balance sheet

The striking thing about the latest consolidated balance sheet of the Lebanese banking sector is the lack of change in its structure. After a period of ten to twelve years at least, assets are still split between cash reserves and deposits at the Banque du Liban (BDL), Treasury bills and other government debt securities, and loans to the private sector. As at the end of 2005, government securities accounted for 25.2% of total consolidated assets, while cash reserves and BDL deposits accounted for 29.2% and loans to the private sector for 23.1%. Foreign assets, which principally include inter-bank deposits with banks abroad accounted for 18.8% and fixed assets for 3.3%. Funding, as has always been the case for the last 15 years, came principally from customer deposits, which accounted for 72% of total liabilities or interest-bearing funding. Total customers’ deposits, excluding deposits from non-residents, amounted to almost $48 billion by