Systemic crisis: Lebanon's crisis qualifies as systemic according to global standards

The Lebanese crisis aligns with global criteria, defining any financial crisis as systemic. 

However, several essential specifications support this characterization:

1-     Macroeconomic impact: The crisis's repercussions extend to the macro-economy.

2-     Financial institution influence: The crisis affects all financial and banking institutions within the financial system.

3-     Debt aggravation: The crisis exacerbates debt-related issues for companies, individuals, and governments.

4-     Trust erosion: The crisis erodes confidence in the financial system, escalating tensions between financial institutions and the public.

These criteria aptly describe the consequences of the crisis in Lebanon, therefore warranting the designation of a systemic crisis.

Systematic crisis necessitates distinct approaches beyond those used for ordinary crises. They require broader measures, including implementing structural reforms within the financial system, supporting sectors impacted by the crisis, and bolstering overall economic confidence.

Governments' intervention becomes essential to establish a comprehensive economic plan to enhance growth and stability.

As a result, in systemic crisis scenarios, a comprehensive rescue plan overseen by the government becomes imperative.

Regrettably, the Lebanese government has yet to implement such a plan despite nearly four years since the crisis erupted.