Bank deposits in Lebanon down by USD 43 billion
Lebanon’s bank deposits started to drop noticeably in 2019 after witnessing an annual growth for decades. The following table shows that they have decreased from USD 177.48 at the end of November 2018 to USD 134.4 billion in November 2021, i.e. a decline of 24.3% or USD 43.08 billion.
Foreign currency and LBP denominated deposits have dropped respectively by USD 18.43 billion and USD 2.465 billion (a large part of these deposits may have been converted into USD).
This drain of deposits may pose a serious threat to the banking sector. If the withdrawn amounts were transferred abroad, their return to Lebanon would be impossible. However, if they are stashed away in people’s home, they may be redeposited in banks once stability is attained, the banking sector is strengthened and credible and transparent banks are established.
A table shows a decline in bank deposits (November 2018-2021).
Source: Information International based on BDL data.