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 sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”