Lebanese Banks in 2025: Between Survival and Resurrection

Introduction

The Lebanese economic and financial situation remained fragile in 2025 despite the election of a new President after more than two years of presidential vacancy. The election was followed by the appointment of Mr. Nawwaf Salam as a new Prime Minister who formed a new government from experts in their fields. This included the appointment of Mr. Karim Souaid as a new Governor for the Central Bank.

Mr. Souaid, in turn, started reforms in the Central Bank where he prepared a comprehensive report backed by evidences and documentations revealing all loans, advances, transfers and payments to previous governments till end 2023. As per the Governor, these exceeded $16.5 billion and might surpass $40 billion. In addition, Central Bank officials took a courageous and unprecedented decision to take legal actions in Lebanon and abroad against any legal or natural person who misused BDL funds or committed fraud in violation of their legal or professional duties.

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