BEIRUT - Banque du Liban Governor Riad Salameh reiterated on Wednesday that Lebanese commercial banks are immune to the global financial crisis thanks to Central Bank measures which prohibited investments in subprime properties in the United States.

Speaking to Al-Jazeera television station, Salameh said the Central Bank has made sure that banks in Lebanon will not be allowed to lend money in an excessive way. Lebanon's ratio of bank loans to deposits is very low compared to many countries in the world, including those in the region.

Conservative lending policies have created a buffer against any unforeseen crisis in the future, Salameh said, adding that Lebanese banks maintain high levels of liquidity.

"Lebanese banks have more than $30 billion in cash out of assets equal more than $90 billion," Salameh said.

He added that Lebanese banks do have investments in portfolios abroad. "We have entered globalization in an organized and orderly way and in a manner that will not increase the risks on Lebanese banks."

But Salameh was not optimistic that the global credit crunch would end soon.

"The crisis will not end any time soon because the size of the debts that were accumulated worldwide has led to an illogical rise in the size of assets," Salameh said.

He warned that extracting the tumor in the financial market quickly would lead to mounting pressure on assets and properties. "We should be extra careful in tackling the financial crisis. It is advisable not to be too hasty in ending the global credit crisis," he said.

He also warned against property speculation in Lebanon as it may lead to a real estate bubble. - Daily Star