Lebanon: Banks nationwide announce indefinite closure as of Oct. 9

Event

Banks in Lebanon have announced that they will halt most operations as of Oct. 9 following a series of armed hold-ups by angry depositors demanding access to their savings. Some banks have stated that they will continue urgent operations for clients and back-office services for businesses; however, front-office services will remain indefinitely suspended.

The recent action comes a few weeks after the Association of Banks announced a similar measure in September following several armed robberies.

Banking service disruptions are almost certain throughout Lebanon during the closure. Cash supplies could run low at ATMs. The closure will likely prompt demonstrations against financial institutions, potentially resulting in localized transport and business disruptions. Security forces will almost certainly deploy to monitor any demonstrations that may materialize.

Context

Lebanon has been mired in an economic crisis for three years since nationwide protests in response to the declining socio-economic conditions began in October 2019. The Lebanese currency has lost some 90 percent of its value, prompting banks to impose severe withdrawal restrictions. Restrictions on withdrawals have led to much of the population being unable to pay for everyday necessities. Consequentially, there has been a wave of armed robberies, with perpetrators demanding to withdraw their savings.

Advice

Consider withdrawing sufficient cash as soon as possible due to potential shortages. Make allowances for possible business disruptions. Avoid any demonstrations that may materialize due to the potential for violence. Leave the area at the first sign of a confrontation.