BEIRUT — There have been widespread reports recently about the Lebanese government’s desire to restructure the banking sector. Minister of Finance Ghazi Wazni said May 15, “The government is seeking to reduce the number of banks in Lebanon — currently amounting to 49 banks — by around 50%.”

Wazni’s comments came as the country entered into negotiations with the International Monetary Fund (IMF) to secure financial aid in the form of loans in return for economic reforms that Lebanon is expected to enact.

Prime Minister Hassan Diab announced April 30 that the government’s economic rescue plan aims at “restructuring the banking and financial sectors in order to grease the economic wheels, provide good and sustainable job opportunities, launch promising economic sectors in line with the high capabilities of the Lebanese people and protect depositors’ money.”

Lebanon’s monetary and financial crisis has led thousands of Lebanese to take to the streets on Oct. 17, 2019, to protest against the deteriorating economic and living conditions plaguing the country. Since then, the Lebanese people have been queuing up in front of banks across the country to receive parts of their deposits, after banks began to impose restrictions on foreign currency withdrawals.