Lebanon's Banking Sector Is Bloated And In Need Of Reform
March 11, 2020, 1:10 pm

Lebanon's Banking Sector Is Bloated And In Need Of Reform

Lebanon faces an unprecedented financial crisis as for years the country's banking sector colluded with government to funnel dollars into the economy at an unsustainable pace. Lebanon's

Prime Minister Hassan Diab noted this in his speech while announcing the country would default on its $1.2 Eurobond, which was due Tuesday, adding that the sector was bloated "four times over."

Bondholders and cabinet members have since turned their attention to the restructuring process Diab stated would follow the default.

One crucial element of Lebanon’s debt restructuring, according to Diab, will be restructuring the country’s banking sector. Analysts have characterized such reforms as inevitable and see substantial downsizing of Lebanese banks, lowering liabilities via a bail-in, foreign buy-ups of Lebanese banks, and other measures as potential options available to Diab’s government. levant

While it remains unclear if the political will exists among Lebanon’s politicians and financial industry to tackle a reform program of this magnitude, according to some experts, any type of bank restructuring would ultimately require a renewal of trust in Lebanon’s financial system to be successful in the long term.

The Lebanese cabinet held a session on Tuesday to focus on an “economic rescue plan” for the country, and debt restructuring talks are set to be held in two weeks, according to Reuters. Such talks would give an indication of what sort of default Lebanon is heading toward, Finance Minister Ghazi Wazni stated on Monday. levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has announced its sponsorship of the “Innovation and Sustainable Technology Solutions Competition (GU - IST Solutions), hosted by Gulf University at its main campus.
This strategic sponsorship reflects BENEFIT’s active role in advancing technological innovation and fostering sustainable solutions to future challenges. It also seeks to empower Bahraini youth by enhancing their skills, capabilities, and competitiveness in innovation and solution development—contributing meaningfully to the broader goals of sustainable development across all sectors.
As part of BENEFIT’s active involvement in the competition, the company has announced that Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication, will serve on the competition’s supervisory committee. Her upcoming participation reflects BENEFIT’s forward-looking commitment to championing academic and professional excellence.
Commenting on the occasion, Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication at BENEFIT, said, “We are privileged to support this pioneering initiative, which aligns seamlessly with BENEFIT’s enduring commitment to fostering innovation and nurturing the potential of Bahrain’s youth. Our participation is rooted in a deep sense of social responsibility and a firm belief in the pivotal role of innovation in shaping a sustainable future. Through such platforms, we seek to empower the next generation with the knowledge, skills, and foresight required to develop impactful solutions that address future challenges, in line with the United Nations Sustainable Development Goals 2030.”
Dr. Aseel Al Ayash Dean of the College of Engineering in Gulf University commented, “We extend our sincere gratitude to BENEFIT for their generous sponsorship and support of the Innovation and Sustainable Technology Solutions Competition. This contribution plays an instrumental role in helping us achieve the strategic goals of this initiative, namely, cultivating a culture of innovation and sustainability, encouraging efforts that address the imperatives of sustainable development, and enhancing the practical and professional capabilities of our students and participants.”
The event will bring together a diverse spectrum of participants, including secondary school students, university undergraduates, engineers, industry professionals, entrepreneurs, academic researchers, and subject matter experts representing a wide range of disciplines.
The competition seeks to inspire participants to develop and present innovative, sustainable technologies aimed at addressing pressing environmental, social, and economic challenges. It encourages the formulation of business models that integrate advanced technological solutions with core principles of sustainability. Moreover, it serves as a platform for emerging leaders, entrepreneurs, and innovators to contribute to the advancement of the Sustainable Development Goals, promote the ethos of responsible technology, and demonstrate its transformative potential across various sectors.
Attendees will have the opportunity to view a series of project presentations submitted by participants, covering diverse areas such as eco-friendly product design, smart and sustainable innovations, renewable energy technologies, water conservation and management, waste minimisation and recycling, green architectural solutions, and sustainable transportation systems. Outstanding projects will be formally recognised and awarded at the conclusion of the event.