Lebanon: Financial System Stability Assessment
IMF Staff Country Reports, January 24, 2017
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- Lebanon: Financial System Stability Assessment
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Bibliographic details
- Published: January 24, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475570816.002
Summary
- This paper discusses findings of the assessment of Lebanon’s financial system.
- Lebanon has maintained financial stability for the last quarter century during repeated shocks and challenges.
- Over time, macroeconomic and financial vulnerabilities have accumulated.
- Although central bank policies have helped to maintain confidence, fiscal adjustment is needed to reduce risks to financial stability.
- The banking system has thus far proven resilient to domestic shocks and regional turmoil, but the materialization of severe shocks could expose vulnerabilities.
- Significant progress has been made to further strengthen Lebanon’s financial integrity framework, with some scope for improvement remaining.
Key findings on vulnerabilities and stability
- Lebanon has maintained financial stability for the last quarter century during repeated shocks and challenges.
- Macroeconomic and financial vulnerabilities have accumulated over time.
- Central bank policies have helped to maintain confidence.
- Fiscal adjustment is needed to reduce risks to financial stability.
- The banking system has proven resilient to domestic shocks and regional turmoil to date.
- Severe shocks could expose vulnerabilities in the banking system.
- Significant progress has been made to strengthen Lebanon’s financial integrity framework, though some scope for improvement remains.
Banking system resilience and risks
- The banking system has thus far proven resilient to domestic shocks and regional turmoil.
- The materialization of severe shocks could expose vulnerabilities.
- Fiscal adjustment is identified as necessary to reduce risks to financial stability.
- Central bank policies have been a key factor in maintaining confidence.
Financial integrity framework
- Significant progress has been made to further strengthen Lebanon’s financial integrity framework.
- Some scope for improvement in the financial integrity framework remains.
Content in this bundle
- Country Report