The Secretary General of the Association of Banks in Lebanon (ABL), Fadi Khalaf, stated that fair solutions remain possible to restore depositors' trust and safeguard the banking sector, emphasizing the importance of deep reforms to revive the country's economy.
In the introduction to the ABL's monthly report titled “Addressing the Financial Deficit: Preserving the Banking Sector and Protecting Depositors' Rights,” Fadi Khalaf stated that fair and balanced solutions to Lebanon's financial crisis are still possible. He emphasized that these solutions must be based on radical reforms, a fair distribution of responsibilities regarding the systemic crisis and, crucially, the restoration of trust in the banking sector, which he sees as vital for the recovery of the Lebanese economy.
Furthermore, he stressed that any proposed solution must reject the reduction of deposits, whether at the Central Bank of Lebanon (BDL) or commercial banks. “Such a measure would be unjust and unacceptable. It would be unjustifiable to burden the banks and depositors with the losses accumulated due to mismanagement of public finances and the BDL,” he stated.
He believes that any economic recovery strategy must include the use of unused public assets and the restructuring of public debt through negotiations with creditors, including holders of Eurobonds, banks, depositors and international financial institutions. “To attract international investments, it is essential to realign the economy towards growth-promoting sectors and to reform the public and financial sectors, revitalize the banking sector within a reformed legislative framework that guarantees a stable legal and regulatory environment, restore trust among depositors and investors,” he said.
“The private sector cannot be held responsible for the financial deficit caused by the flaws of the public sector. Therefore, it is essential to involve all stakeholders—the state, the BDL, banks, depositors and economic bodies—in a solution-seeking process based on transparency and sincerity,” Khalaf emphasized.
He concluded by noting that “there can be no economic recovery without a strong banking sector, and the banking system cannot exist without the protection of depositors' rights.”
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