A once prosperous banking sector now Lebanon’s banks are shutting branches and laying off employees in droves, resizing to the bleak reality of a crisis they are widely blamed for.
The capital Beirut was a booming regional financial hub, attracting savers keen to profit from high interest rates and banking secrecy laws.
Lebanon’s government defaulted on its foreign debt in 2020, stymying the country’s hopes of quickly securing new international credit or donor money to stem the crisis.
In December, the government of Prime Minister Najib Mikati set financial sector losses at around $69 billion in a crucial step towards advancing IMF talks.
Central bank chief Riad Salameh has said banks that are unable to lend must “exit the market”.
