1.

Lebanese banking sector

As per the Central Bank of Lebanon, the banking sector in December 2020 constituted of 63
banks, kept unchanged from December 2019, out of which 47 Commercial Banks and 16 Medium
and Long-Term Banks.
In details, 47 commercial banks pertained 992 branches in December 2020 down from 1,058
branches in December 2019 of which 22 branches related to foreign banks, 15 branches related to
Islamic banks and 14 novo branches. Those branches are distributed over all regions where Beirut has
the highest representation by Dec-2020 for 52.8% of the total number of branches versus 53.1%
as at Dec-2019, followed by Mount Lebanon for 20% by Dec-2020 and Dec-2019, followed by
South Lebanon for 10.4% by Dec-2020 and Dec- 2019.
The banking sector staff totaled 22,162 employees by end-2020, of which females represented
48.5% of the total number of employees where 31 of them are in General Management.
As for the financial sector staff organization totaling 1,084 employees by end-2020, out of which
females represented 40.0% of the total number of employees where 5 of them are in General
Management.

Lebanon is facing an economic crisis of unparalleled proportions. COVID-19 has severely impacted
economic activity in Lebanon as it has in other countries throughout the world. However, the
Lebanese economy was in free fall even prior to the pandemic. Since the economic collapse began in
2019, Lebanon has seen triple-digit inflation, heightened unemployment and a skyrocketing
poverty rate, as per the same source. Stringent lockdowns in January 2021 kept the spread of COVID-19
under control. However, the impact of COVID-19 on poverty in Lebanon is severe, exacerbating
Lebanon’s pre-existing crises and hindering economic recovery.
Lebanon was once a popular destination for tourists. However, economic collapse and the COVID-19
pandemic have decimated one of the largest sectors of Lebanon’s economy: tourism. Economic
instability has exacerbated precarious living conditions for millions of impoverished Lebanese
people. Public debt defaults and a banking liquidity crisis forced many businesses to close even before the
pandemic hit. Lebanon’s economy has steadily contracted since 2019. The impact of COVID-19
increased Lebanon’s unemployment rate from 6.04% in 2019 to 6.6% in 2020, the highest rate seen
in a decade. The failure of Lebanon’s economic and financial systems has resulted in millions unable to
afford basic necessities.
The impact of COVID-19 on poverty in Lebanon has been harsh. While wealthy nations’
 economies suffered from lockdowns and closures, the economic effects of the pandemic were even
more acute in impoverished nations struggling to recover from pre-existing catastrophes. COVID-19
has made poverty more widespread, narrowing pathways out of poverty.
While the worsening situation in Lebanon has attracted international attention and support, the structural
issues that led to extreme poverty have only been alleviated, not solved. With continued
commitment and support from the global community, Lebanon can successfully rebuild and recover.
https://pwstg02.blob.core.windows.net/pwfiles/ContentFiles/13504File.pdf

2. Products and services

The different products in a bank can be broadly classified into:

 Retail Banking.
 Trade Finance.
 Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the
wholesale banking operations, which cover treasury operations, are at the head office or a
designated branch.

i. Retail Banking:

 Deposits
 Loans, Cash Credit and Overdraft
 Negotiating for Loans and advances
 Remittances
 Book-Keeping (maintaining all accounting records)
 Receiving all kinds of bonds valuable for safe keeping

ii. Trade Finance:

 Issuing and confirming of letter of credit.

 Drawing, accepting, discounting, buying, selling, collecting of bills of
exchange, promissory notes, drafts, bill of lading and other securities.

iii. Treasury Operations:

 Buying and selling of bullion, Foreign exchange.

 Acquiring, holding, underwriting and dealing in shares, debentures, etc.
 Purchasing and selling of bonds and securities on behalf of constituents.

The bank provides a whole lot of other services like investment counseling for individuals, short-
term funds management and portfolio management for individuals and companies. It undertakes
the inward and outward remittances with reference to foreign exchange and collection of varied
types for the Government.

Some of the services offered by banks are:

a. Credit Card: is “postpaid” or “pay later” card that draws from a credit line-money made
available by the card issuer (bank) and gives one a grace period to pay. If the amount is
not paid full by the end of the period, one   is charged interest.
b. Debit Cards: is a “prepaid” or “pay now” card with some stored value. Debit Cards
quickly debit or subtract money from one’s savings account, or if one were taking out
cash.
c. Automated Teller Machine: The introduction of ATM’s has given the customers the
facility of round the clock banking. The ATM’s are used by banks for making the
customers dealing easier. ATM card is a device that allows customer who has an ATM
card to perform routine banking transaction at any time without interacting with human
teller. 
d.  Telebanking: refers to banking on phone services. A customer can access information
about his/her account through a telephone call and by giving the coded Personal
Identification Number (PIN) to the bank. Telebanking is extensively user friendly and
effective in nature.
 e. Mobile Banking: A new revolution in the realm of e-banking is the emergence of mobile
banking. On-line banking is now moving to the mobile world, giving everybody with a
mobile phone access to real-time banking services, regardless of their location. 

https://www.mbaknol.com/business-finance/different-products-offered-by-banks/

3. Clients and suppliers

a. Clients
 The individual is a natural person who expresses banking needs outside of any
professional activity, in a personal and private capacity
 A professional is an individual entrepreneur, having a personal business and working for
his own account. It is defined above all by its activity carried out for profit, not limited to
the management of private assets, not salaried and organized around a single person and
of modest size.
There are two main categories where a number of different professions are grouped
together:
 Liberal professions
 Traders, artisans and farmers
 Companies represent the traditional banking market, the one in which they are interested,
to develop formulas adapted to the size of the company, but also in line with the
economic situation: two categories of companies coexist: large companies formed by
multinationals, state enterprises, large private groups and SME.
https://wikimemoires.net/2012/02/types-des-clients-bancaires/
b. Suppliers

There are two main suppliers for a bank. The first group comprises of depositors who supply the
primary resource of capital, while the second is its employees, also known as the resource of
labor. The threat from individual depositors is minimal, just the way it is with the bargaining
power of consumers. Major corporate customers, and large groups of depositors, though, tend to
be a big threat.
https://www.investopedia.com/articles/markets/020916/analyzing-porters-five-forces-jpmorgan-chase-
jpm.asp
 4. Opportunities and threats
a. Opportunities
 Expansion in the Middle East
 Active participation of young people in ADS production
 New sources of income possible at browse streaming platforms
 Internal tourism
 Success of Lebanese directors abroad
b. Threats

 Growing competition in the Middle East

 Fluctuating global economy and recession

 High ticket cost

 Draining of sponsorship income and

 Sponsorship due to the economic crisis and financial

 Loss of skilled labor without training institutions

 Automation of the production process threatens the future

 Political instability

http://www.institutdesfinances.gov.lb/wp-content/uploads/2021/03/PPT-ICC-Etude-
ICC.pdf