News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
20
o
Mount Lebanon
20
o
Metn
21
o
Keserwan
21
o
North
21
o
South
21
o
Bekaa
16
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Zaman
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
20
o
Mount Lebanon
20
o
Metn
21
o
Keserwan
21
o
North
21
o
South
21
o
Bekaa
16
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Documentaries
Lebanon’s Centennial
News Bulletin
The Untold History
Talk Show
Series
Sports
Variety
Other
Comedy
Oldies
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Banking sector to recover within 10 years if necessary action takes place: expert
Lebanon Economy
2023-01-30 | 08:01
High views
Share
Share
3
min
Banking sector to recover within 10 years if necessary action takes place: expert
Since 2019, Lebanon has been witnessing a financial crisis. However, a finance expert in London expressed that the situation could resolve within five to ten years if a program that helps small depositors and makes big depositors partners in new banks is implemented.
"We would like to see joint action by the (big) depositors to work with the banks, the government, and the IMF, if they can be brought in, to restructure a system that has failed — and the failure of the system was comprehensive," said George Kanaan, CEO of the Arab Bankers Association, a non-profit professional organization in London.
According to an interview with Arab News, he told the English-language daily newspaper that corruption and a waste of revenues played a small role in the failure, as the financial system collapse was caused by management incompetence, especially in Banque du Liban.
"The central bank governor was brought in a long, long time ago, and he overstayed any reasonable period of governance (and) mismanaged events, possibly because of ignorance, possibly because it seemed to work so let it happen, or pressures from the political establishment," Kanaan said.
Adding that the "black hole" in the country's banking system is about $100 billion, as around a third of it is loaned to the Lebanese state, and "about two-thirds of it went to supporting the pound and a fixed exchange rate of 1,500 Lebanese pounds to the dollar. This strategy implemented after the civil war helped "stabilize the economy and put it on a sound footing," Kanaan said.
However, the CEO of the Arab Bankers Association affirmed that between five and ten years, Lebanon could have a new, fully recovered system, and with people "with their money back," Kanaan said, adding that any system can be reformed every five years.
"(But) you are going to have to address the top tier of the depositors with a bail-in, similar to (what happened in) Cyprus, when all the big depositors become shareholders in new banks, and the middle depositors will have to be addressed through some sort of securitization or bonds program."
Since the bail-in intends to rescue a failing financial institution by making its creditors and shareholders bear the cost of recapitalizing the institution by converting some or all of its bail-in debt into common shares.
Adding that the recovery will happen faster if significant revenues start to flow in. Concluding that "the interesting thing on the horizon is the gas and oil discoveries offshore," which the country is due to begin exploiting.
Breaking Headlines
Lebanon News
Lebanon Economy
Lebanon
Banking Sector
Financial Crisis
Depositors
Recovery
Next
Lebanon's Economy Ministry, WFP sign agreement to enhance price transparency and consumer protection
Recommended For You
d-none hideMe
0
Lebanon Economy
2024-04-26
Fuel prices decrease in Lebanon
Lebanon Economy
2024-04-26
Fuel prices decrease in Lebanon
0
News Bulletin Reports
2024-04-23
US lawsuit raises stakes for Lebanon's financial institutions
News Bulletin Reports
2024-04-23
US lawsuit raises stakes for Lebanon's financial institutions
0
News Bulletin Reports
2024-04-23
E-governance: Lebanon's Economy Ministry launches online services to expedite procedures
News Bulletin Reports
2024-04-23
E-governance: Lebanon's Economy Ministry launches online services to expedite procedures
0
Lebanon Economy
2024-04-23
Fuel prices slightly increase in Lebanon
Lebanon Economy
2024-04-23
Fuel prices slightly increase in Lebanon
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
News Bulletin Reports
2024-04-27
Negotiations and Internal Disputes Escalate Between Gaza and Lebanon Fronts in Israel
News Bulletin Reports
2024-04-27
Negotiations and Internal Disputes Escalate Between Gaza and Lebanon Fronts in Israel
0
World News
2023-09-10
UK parliament researcher arrested over China spying
World News
2023-09-10
UK parliament researcher arrested over China spying
0
News Bulletin Reports
12:26
Critical juncture: Gaza war reveals Israeli divisions amid international pressure
News Bulletin Reports
12:26
Critical juncture: Gaza war reveals Israeli divisions amid international pressure
0
Middle East News
2024-04-07
Iranian foreign minister visits Oman on regional tour
Middle East News
2024-04-07
Iranian foreign minister visits Oman on regional tour
Videos
d-none hideMe
0
Lebanon News
2023-12-11
Breaking: Israel launches raid north of Litani on Monday (Video)
Lebanon News
2023-12-11
Breaking: Israel launches raid north of Litani on Monday (Video)
0
Lebanon News
2023-11-02
Exclusive to LBCI: U.S. State Department's Wooster Stresses Lebanon Must Avoid War, Sees Renewed Push for Two-State Solution
Lebanon News
2023-11-02
Exclusive to LBCI: U.S. State Department's Wooster Stresses Lebanon Must Avoid War, Sees Renewed Push for Two-State Solution
0
Lebanon News
2023-10-18
Protests Erupt near US Embassy in Awkar Against Israeli Attacks on Al-Maamadani Hospital in Gaza
Lebanon News
2023-10-18
Protests Erupt near US Embassy in Awkar Against Israeli Attacks on Al-Maamadani Hospital in Gaza
0
Lebanon News
2023-10-05
ATFL's Ambassador Edward Gabriel on Navigating Through Economic, Political, and Refugee Crises
Lebanon News
2023-10-05
ATFL's Ambassador Edward Gabriel on Navigating Through Economic, Political, and Refugee Crises
0
Sports News
2023-08-31
Amir Saoud Powers Lebanon to Victory Over Cote d'Ivoire: A Deep Dive Into The Numbers
Sports News
2023-08-31
Amir Saoud Powers Lebanon to Victory Over Cote d'Ivoire: A Deep Dive Into The Numbers
0
Sports News
2023-08-29
France Edges Past Lebanon in a Nail-Biter at FIBA World Cup 2023: A Statistical Deep Dive
Sports News
2023-08-29
France Edges Past Lebanon in a Nail-Biter at FIBA World Cup 2023: A Statistical Deep Dive
0
Lebanon News
2019-02-28
Pierre el-Daher, the man who defeated the Lebanese Forces
Lebanon News
2019-02-28
Pierre el-Daher, the man who defeated the Lebanese Forces
Most read
d-none hideMe
24 hours
7 days
Month
1
Israel-Gaza War Updates
00:15
US officials say Israel may be violating international law in Gaza, Reuters source reports
Israel-Gaza War Updates
00:15
US officials say Israel may be violating international law in Gaza, Reuters source reports
2
Lebanon News
04:09
French FM: We will push proposals to prevent war between Hezbollah and Israel
Lebanon News
04:09
French FM: We will push proposals to prevent war between Hezbollah and Israel
3
Lebanon News
00:25
French foreign minister aims to prevent Israel-Hezbollah conflict escalation in Lebanon visit
Lebanon News
00:25
French foreign minister aims to prevent Israel-Hezbollah conflict escalation in Lebanon visit
4
News Bulletin Reports
12:25
France's diplomatic efforts: Calming the Lebanese-Israeli border
News Bulletin Reports
12:25
France's diplomatic efforts: Calming the Lebanese-Israeli border
5
Israel-Gaza War Updates
05:15
Palestinian President: Only US can prevent Israeli attack on Rafah
Israel-Gaza War Updates
05:15
Palestinian President: Only US can prevent Israeli attack on Rafah
6
Israel-Gaza War Updates
06:03
Hamas official: Hamas delegation to visit Cairo on Monday for Gaza ceasefire talks
Israel-Gaza War Updates
06:03
Hamas official: Hamas delegation to visit Cairo on Monday for Gaza ceasefire talks
7
Lebanon News
07:17
Berri to Séjourné: Lebanon is committed to implementing Resolution 1701
Lebanon News
07:17
Berri to Séjourné: Lebanon is committed to implementing Resolution 1701
8
Israel-Gaza War Updates
05:49
Gaza Health Ministry: 34,454 Palestinians killed in Israeli attack since Oct. 7
Israel-Gaza War Updates
05:49
Gaza Health Ministry: 34,454 Palestinians killed in Israeli attack since Oct. 7
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More