Lebanese Banking Sector Faces Service Suspensions Amid Rising Depositor Attacks
The Lebanese Banks Association (ALB) has announced a temporary halt to client services as a response to a new wave of confrontations by dissatisfied depositors. To safeguard staff and protect property, banks will remain closed for an indeterminate period starting Friday, July 21, according to ALB’s statement disseminated on the organization’s social media channel. This situation has been reported by TASS and other regional outlets.
On July 18, an unidentified individual breached a Credit Libanais branch in the city of Shkhim with a grenade and demanded access to a frozen account that had been blocked for three years amid the country’s ongoing financial crisis. After receiving part of the money needed for medical treatment, the attacker surrendered to the security team. Similar incidents were reported on July 19 and 20 in Antelas, Beirut, and Bint Jbeil, underscoring a pattern of coercive actions aimed at unlocking dormant funds. The ALB subsequently urged authorities to shield bank offices, but concerns remain about the adequacy of protective measures.
In a separate event in Sin el Fil, two assailants breached a Byblos Bank branch and threatened to set the building ablaze unless offered a deposit of $23,000. In response, the ALB chose to suspend operations across banking institutions temporarily, highlighting the perceived risk environment for financial facilities that serve as critical access points for public funds.
Last year saw additional interruptions to customer service, with several periods of warning strikes occurring in September and October as part of broader protests against the handling of bank offices amid the crisis. The ALB leadership has consistently called for stronger protective measures and a stable operating framework that can withstand episodes of social unrest while preserving essential financial services for households and businesses alike. These disruptions have prompted discussions among stakeholders about contingency planning, emergency staffing, and the resilience of the banking network during times of heightened tension.
Beyond immediate safety concerns, the ALB has voiced dissatisfaction with authorities’ plans to audit a group of major banks in line with recommendations from the International Monetary Fund regarding alleged illegal withdrawals abroad. The association argues that the audit process should be carefully scoped to avoid unintended consequences for liquidity and customer trust, while still addressing governance and compliance priorities. The debate touchpoints include regulatory transparency, the protection of customer deposits, and the long-term legitimacy of Lebanon’s monetary stabilization efforts.
In related developments, discussions continue at regional and international levels about the broader implications of sanctions and asset freezes, with attention to sovereign assets and the role of international institutions in guiding economic reform. Observers note that the current environment intensifies scrutiny of how banks manage risk, respond to depositor demands, and coordinate with security and regulatory agencies to maintain safe operations. The situation remains fluid, and stakeholders are watching for signs of policy clarity and concrete steps to restore confidence in the banking system. The broader objective remains a secure, stable banking sector capable of serving ordinary citizens who rely on deposits for daily needs and for small business activity. [Attribution: ALB briefing; corroborating reports from TASS and regional press]”}