Role and Functions
The BCCL’s function is to supervise banks, financial institutions, money dealers, brokerage firms and leasing companies. The BCCL performs its supervisory functions as an independent body, but in close coordination with the Governor of the Central Bank (who has the legal prerogative to ask for all reports of the BCCL).
The BCCL has a separate budget approved by the Higher Banking Council (HBC) and funded by the Central Bank. A board member of the Banking Control Commission cannot be removed from office, except for physical incapacitation or gross negligence of duties. The BCCL performs its duties mainly through periodic on-site and off-site examinations of the entities it supervises by its highly qualified (and continuously trained) examiners.
The BCCL evaluates financial soundness of regulated entities. This is done through on-site and off-site reviews. The reviews include the analysis of financial statements and monitoring the implementation by these institutions of:
- The provisions of the Lebanese Code of Money and Credit.
- Basel committee requirements, especially the Core Principles for Effective Banking Supervision.
- The Central Bank’s regulations.
- The BCC’s circulars and instructions.
- International Accounting Standards.
- Corporate Governance.
Furthermore, the BCCL can impose corrective and remedial measures on individual banking institutions if found necessary.
Banks (69), Financial Institutions (50), Exchange Institutions (323).