ABL: Lebanon’s Deposit Recovery Challenge: $29 Billion at Risk amid Banking Liquidation Concerns

In his September 2026 editorial titled “Will 550,000 Bank Accounts Worth $29 Billion Be Sent into Liquidation?” Dr. Fadi Khalaf, Secretary General of the Association of Banks in Lebanon (ABL), examines the potential consequences of Lebanon’s proposed Financial Regularization and Deposit Recovery Law. With the Bank Restructuring Law already enacted, Khalaf argues that attention has shifted toward the legislation that will ultimately determine the fate of depositors’ funds. While the need to reimburse depositors is widely acknowledged, the central challenge lies in identifying who will bear the financial burden, how repayments will be financed, and whether sufficient liquidity exists to fulfill these obligations within the proposed timeframes. The editorial raises concerns that implementing a deposit recovery framework without clearly defined funding sources and practical mechanisms could deepen Lebanon’s financial crisis rather than resolve it.

For the full report click HERE.