The financial crisis in Lebanon has had a heavy impact across sectors in Lebanon. The once-strong Lebanese banking sector is no different, and its employees are suffering alongside the rest of the population.
Formerly regarded as one of the pillars of Lebanon’s economy, banks are now taking exceptional measures to cut expenses and avoid collapse.
Since the effects of the crisis began to set in, back in late 2019, around 3,000 employees in the banking sector have lost their jobs or resigned, four senior bankers told Reuters on Thursday.
This constitutes over 10% of the sector’s total workforce, but it is not the only number that has gone down in recent months.
According to the same source, loans to the private sector have declined by 25% year on year, to $33 billion. “The sector is dead. It doesn’t lend, it doesn’t make profits,” one of the bankers said.
The banking industry is grappling with losses worth $83 billion, according to the latest official numbers, whereas Lebanon’s economic output was $55 billion in 2019.
Our team works tirelessly to ensure Lebanese people have a reliable alternative to the politically-backed media outlets with their heavily-funded and dangerous propaganda machines. We've been detained, faced nonstop cyber attacks, censorship, attempted kidnapping, physical intimidation, and frivolous lawsuits draining our resources. Financial support from our readers keeps us fighting on your behalf. If you are financially able, please consider supporting The961's work. Support The961. Make a contribution now.