Lebanese banks reopen for first time in two weeks

Lebanese banks opened to customers on Friday for the first time in two weeks following an unprecedented wave of protests that led the prime minister to resign, with small numbers of customers queuing as the doors opened.

According to Reuters, Lebanon’s banks will seek to prevent capital flight when they open on Friday but without imposing formal capital controls.

Analysts and bankers have cited widespread concern about a rush by depositors to withdraw their savings or transfer them abroad when the banks reopen.

The central bank has pledged not to impose capital controls when banks re-open, measures that could deter the currency inflows and investment Lebanon badly needs to weather its most severe economic pressures since the 1975-90 civil war.

But seven banking sources said on Thursday that while Governor Riad Salameh was sticking to that policy, commercial banks would only be allowing transfers abroad in cases such as payments to children, for healthcare or loan payments.

Via Reuters