## Lebanon: Financial System Stability Assessment

_IMF Staff Country Reports, January 24, 2017_

## Source details

**Canonical URL:** [Lebanon: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2017/01/24/lebanon-financial-system-stability-assessment-44574)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/01/24/lebanon-financial-system-stability-assessment-44574/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/01/24/lebanon-financial-system-stability-assessment-44574/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/01/24/lebanon-financial-system-stability-assessment-44574/bundle-manifest.json)

## 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**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr1721.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr1721.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2017/01/24/lebanon-financial-system-stability-assessment-44574_