Banks approach critical juncture
Seven years after the financial and banking crisis in Lebanon, the country is still in the process of rebuilding its banking sector, which has lost much of its core functions. Trust continues to decline among banks, depositors, and the state. The new law for banking reform and regulation focuses on identifying sustainable institutions, addressing the financial gap, and distributing losses fairly and transparently. However, success depends on the independence of implementation and transparency in asset valuation. Experts emphasize that what is needed is the construction of a new banking sector—smaller and more transparent—that achieves economic sustainability and restores depositors’ confidence, while also addressing whether it is possible to distribute losses fairly, protect depositors’ rights, and turn the collapse into the beginning of genuine reform.
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