Lebanese Commercial Banks: Recent Organizational Statistics

Lebanese banks have long been pillars of the country’s financial system, contributing significantly to its economic growth and stability. However, since the onset of the crisis in 2019, the banking sector has been confronted with unprecedented challenges that have tested its resilience and viability. The crisis, characterized by economic instability, a severe currency devaluation, political turmoil, and capital controls, has posed significant threats to the banking industry’s sustainability. This digest will delve into the number of Commercial banks in Lebanon and abroad as well as the staff organization. Through a comprehensive analysis, we hope to provide insights into the transformation of Lebanese banks amidst the crisis.

Table 1: Number of Lebanese Commercial Banks throughout the years (2019- 2022):

The Lebanese banking sector has undergone significant changes since the start of the crisis in 2019. According to the Quarterly Bulletin of the fourth quarter of 2022 from Banque du Liban, the number of Lebanese commercial banks reached 46 in December 2022, with 9 of them being foreign banks and 4 being Islamic banks.

Looking back, in December 2018, there were 49 Lebanese commercial banks, including 10 foreign banks and 5 Islamic banks. However, the following years saw a decline in the number of banks. By December 2019, the total number reduced to 47 commercial banks, with 9 foreign banks and 4 Islamic banks. Subsequently, in December 2021 and 2022, the number remained stable at 46 commercial banks, maintaining the same ratio of foreign and Islamic banks.

The crisis also had an impact on the number of bank branches in Lebanon. In December 2018, there were 1080 branches, but by December 2022, the number had dropped significantly to 782 branches, indicating a considerable decrease.

Moreover, Lebanese banks’ branches abroad also experienced a decline during the crisis. In December 2018, there were 76 branches, which decreased to 50 by December 2022, indicating a significant contraction in the international presence of Lebanese banks.

The Bulletin paints a clear picture of the challenges faced by the Lebanese banking sector amid the ongoing crisis. The reduction in the number of banks and branches signifies the tough times the industry has endured. However, the stability in the number of banks since December 2021 may indicate some level of stabilization.

Table2: General Management and Employees in Lebanese Commercial Banks (2019- 2022)

The above table on staff organization shows that the representation of women in general management positions in Lebanese commercial banks is concerning. In 2019, out of a total of 213 general management positions, only 25 were held by females. Similarly, in 2022, out of 172 general management positions, there were only 23 female managers. This stark disparity highlights a gender imbalance in leadership roles within the banking sector.

The gender disparity is further evident when looking at the overall employee numbers. In 2019, there were 12,084 male employees and 11,657 female employees in the banking sector. By 2022, the total number of employees had significantly decreased to 7,825 male employees and 7,540 female employees, signaling an unfortunate trend of diminishing opportunities for both genders. Moreover, the ratio of male to female employees in the banking sector remained skewed throughout the years, with a higher number of male employees compared to female employees in both executive and technician roles. This contrast accentuates the institutional hurdles that women face in accessing equal opportunities. It is evident that the banking sector in Lebanon continues to grapple with achieving genuine gender equality and diversity, reinforcing the pressing need to dismantle the barriers hindering women’s professional advancement.

Overall, the decline in the number of employees from 23,954 in 2019 to 15,537 in 2022 shows the severity of the crisis’s impact on the banking sector. Indeed, it can be attributed to the ongoing crisis, which has led many to quit their jobs in the banking sector, aside from those who retired, due to very low salaries and the overall threat to the industry’s stability.

In conclusion, the banking sector needs to imperatively address the critical issues that have impacted customer trust, employee retention, and gender diversity. Indeed, rebuilding customer trust is of paramount importance for the banking sector. The crisis has eroded confidence among customers, resulting in capital flight and diminished faith in the stability of banks. Restoring trust requires transparent communication, improved financial practices, and steadfast commitment to safeguarding customers’ assets. By prioritizing customer-centric strategies, banks can demonstrate their dedication to rebuilding confidence and fostering enduring relationships with their clientele.

Employee retention is another critical area that demands immediate attention. The economic challenges and low salaries have led many talented professionals to seek opportunities elsewhere. Retaining skilled employees requires offering competitive compensation packages, professional development opportunities, and a supportive work environment. By investing in their workforce, banks can ensure continuity and expertise within their ranks, contributing to long-term sustainability and growth.

Moreover, addressing gender diversity and promoting gender balance within the banking sector is essential for creating an inclusive and equitable work environment. The underrepresentation of women in leadership roles, particularly in general management positions, highlights the need for proactive initiatives to provide equal opportunities and empower female professionals. Diverse leadership fosters innovation, creativity, and adaptability, enabling banks to navigate challenges effectively and make informed decisions.