The Chairman of Association of Banks in Lebanon, Salim Sfeir said that “Lebanon's banks are expected to recover from the decline it registered during the first five months of 2019 as the clients’ optimism came back after the government's budget was approved.”
He pointed out that deposits were down to $176 billion by the end of May from $179 billion at the end of December 2018, expecting a very positive recovery given that the market in Lebanon is very resilient.
"Banks will take steps to support the economy in the next four to seven months, including cutting interest rates and providing more loans to some sectors, which have helped attract between $800 million and $1 billion," he said.
He added: "This is certainly a positive sign, as there is an additional $1 billion in reserves, and despite of its high cost, it is there.”
Mr. Sfeir considered that "the average interest rates paid on deposits in Lebanon increased to about 6.8% this year from 3.4% to 3.5% last year". Pointing out that "despite the fact that these prices were high, but they are in line with those in the regional market, and the loans also shrank during the five months to the end of May by about 5 percent."
Source: (CNBC Arabia, Edited)
