In an op-ed published ahead of the Association of Banks in Lebanon’s (ABL) monthly report, Secretary General Fadi Khalaf once again sounded the alarm, warning that the absence of a comprehensive solution remains the greatest threat to Lebanon’s economic and financial future.
With the country’s systemic crisis entering its sixth year, Khalaf denounced the authorities’ ongoing failure to implement deep reforms in the banking sector and to close the financial gap in a fair and balanced manner. He called for a clear division of responsibilities between the state, Banque du Liban (BDL), and commercial banks, all within a transparent legal framework.
While acknowledging recent efforts by the BDL through updated circulars—most notably amendments to Circulars 158 and 166 introduced by Governor Karim Souaid—Khalaf stressed that these adjustments meet a long-standing demand: to stop draining foreign currency reserves to artificially support the Lebanese pound or finance non-essential imports at the expense of depositors.
The ABL views the recent decision to raise monthly withdrawal limits as a necessary correction to what it describes as an unfair policy that had long denied depositors access to their own funds, while reserves continued to erode through ineffective measures.
“The real erasure of deposits occurred when reserves were depleted elsewhere. Today, these funds are finally—if only partially—being returned to their rightful owners: the depositors,” Khalaf stated.
He outlined three urgent priorities: a fair redistribution of the remaining reserves to depositors, temporary improvements in purchasing power while awaiting a comprehensive rescue plan, and the swift adoption of banking restructuring laws to restore confidence and clarify accountability.
The ABL reaffirmed its commitment to two inseparable objectives: protecting depositors’ rights and ensuring the survival of the financial sector.
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