Policy Pillars for Lebanon’s Economic and Financial Recovery

In a previous article titled “Lebanon’s Banking Crisis: Lessons from Five Decades of Global Crises”, we presented the overview and implications of the Lebanese Banking Crisis based on the International Monetary Fund’s characteristics of past systemic bank crises and how Lebanon’s compare with them. We found that based on this comparison, the Lebanese banking crisis is a systemic one. In this article, we will present, in brief, a framework of a solution for the Lebanese crises. This resolution will be built up on multi pillars as Lebanon’s crisis is not trust, liquidity or banking crisis, but a multi-head crisis. It involves the central bank, commercial banks, fiscal sector, exchange rate regime, state-owned enterprises, and institutional governance.

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