structural:summarization, linguistic:paraphrasing
Banking and finance

The Banking System is the backbone of the local economy with a balance sheet of $152 billion at the end of 2012, nearing 3.5 times the GDP estimated at $43 billion by the IMF. Bank deposits also increased in 2012 by 8% to 125 billion dollars, 82 percent of the sector's assets. "Banks are still attracting deposits because the interest rates offered are higher than the ones in Europe and the United States", says Marwan Mikhael, head of research at BLOM Bank.

Beirut's foreign reserves were still close to an all-time high when they reached $32.5 billion in 2011 and analysts say that the Central Bank can cover nearly 80 percent of the Lebanese currency in the market. This means that the Central Bank can easily cope with any unforeseen crisis in the future thanks to the massive foreign currency reserves.

The Lebanese banking system is endowed with several characteristics that promote the role of Beirut as a regional financial center, in terms of ensuring protection for foreign capital and earnings. The Lebanese currency is fully convertible and can be exchanged freely with any other currency. Moreover, no restrictions are put on the free flow of capital and earnings into and out of the Lebanese economy. The passing of the banking secrecy law on 3 September 1956, subjected all banks established in Lebanon as well as foreign banks' branches to the "secret of the profession". Both article 16 of law No. 282 dated 30 December 1993 and article 12 of decree No. 5451 dated 26 August 1994, offer exemptions from income tax on all interest and revenues earned on all types of accounts opened in Lebanese banks. On the first of April 1975, decree No. 29 established a free banking zone by granting the Lebanese government the right to exempt non-residents' deposits and liabilities in foreign currency from: the income tax on interest earned, the required reserves imposed by the Banque Du Liban by virtue of article 76 of the Code of Money and Credit, the premium of deposit guarantee imposed on bank deposits to the profit of the National Deposit Guarantee Institution.