Holding the state accountable: Association of Banks' monthly report highlights financial responsibility

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

The opening editorial of the monthly report by the Association of Banks in Lebanon (ABL) highlights the state's responsibility towards its citizens and financial institutions.

Fadi Khalaf, the Secretary-General of ABL, emphasizes that it is the right and duty of the state to address the demands put forth by the banking sector and depositors. These demands include:

-         Holding accountable those who misuse funds meant for supporting traders from others' money.

-         Ensuring a fair distribution of profits without exploiting the hard work of others.

-         Combating smuggling operations that siphon off depositors' savings across borders.

-         Stabilizing a currency whose actual value has been revealed over time.

The report points out that the state bears responsibility for deposit depletion, citing the $51 billion in significant losses incurred by the Lebanese banking sector until 2020.

Furthermore, the state owes the Banque du Liban (BDL) $16.5 billion.

It is highlighted that BDL has squandered approximately $23 billion since the beginning of the crisis, primarily on supporting smuggling, traders, and the Lebanese lira.

Moreover, the absence of laws preventing borrowers from enriching themselves at the expense of depositors has led to a staggering $31 billion loss.

In summary, the state is held accountable for dissipating over $121 billion out of the initial $124 billion deposited in banks as of October 17.