Lebanon's banking crisis intensifies as Association of Banks voices alarm over persistent attacks

The Association of Banks in Lebanon (ABL) issued a statement expressing concern over recent attacks targeting bank branches and employees, describing it as the most dangerous phase in Lebanon's history.  

It stated that on Monday, rumors circulated about banks planning to close their branches, prompting the banks to deny the claims to safeguard the interests of depositors and ensure the continuity of services. 

However, the attacks have persisted, appearing to be coordinated efforts to force banks into closure. Additionally, the association criticized the leniency of the state and its institutions in dealing with the assailants despite the threats posed to the lives of bank employees.  

It suggested that such leniency encourages the attackers to continue their actions as if the objective is to force the banks into an indefinite closure. 

ABL stated, "This is not how systemic crises, which the state bears responsibility, should be addressed. Nor is this how depositors can recover funds lost due to years of misguided policies." 

The banks warned that, given the ongoing attacks, particularly those targeting employees and customers inside branches, they cannot continue their operations as if nothing is happening. Consequently, they may be compelled to reinstate previous regulatory measures if the assaults persist to avoid any adverse consequences. 

The association emphasized that adopting rationality and enacting necessary laws to protect the rights of depositors is the only path toward an effective solution.