After unprecedented shutdown, Lebanon’s banks reopen, mitigate nationwide panic
Lebanese banks have been shut for two weeks straight, not only because of the unprecedented nationwide protests but also because of the accumulation of an unresolved economic crisis.
The two-week closure of Lebanon’s banks during historic protests that prompted the resignation of Prime Minister Saad Hariri Oct. 29 has restricted the movement of finances within and out of the country. But despite the enormity of the political and economic crisis, banks proved competent in managing fear upon their reopening Nov. 1.
“Banks in Lebanon managed a huge challenge very effectively, making what was expected to be a catastrophic day, [relatively] benign,” Dan Azzi, former CEO of Standard Chartered in Lebanon and Harvard fellow, told Al-Monitor.
“Among big banks, the champion was Banque Libano-Francaise, which used reverse psychology, demonstrating liquidity and using it wisely by allowing any type of transfers including overseas. This actually relaxed many of their clients who ended up either not withdrawing funds or withdrawing much less than they had intended,” he said.
According to Azzi, Banque Libano-Francaise also showed equal treatment to clients across the financial spectrum. Reports of banks offering privileges to clients with significant capital, he noted, were true even during the revolution when the average banker was unable to access their accounts to the full extent.
