Banque du Liban
Banque du Liban is the central bank of Lebanon. It was established on August 1, 1963, and became fully operational on April 1, 1964.
In 2023, Wassim Mansouri stepped up as interim governor of the Banque du Liban after Lebanon failed to name a successor to Riad Salameh, whose term finished in July 2023. Salameh, who was chairman for 30 years, has been accused of corruption, money laundering and running the largest Ponzi scheme in history; he was additionally labeled "the world’s worst central banker". He is currently under sanctions by Canada, the United Kingdom and the United States.
One of the main responsibilities of the bank is issuing Lebanon's currency, the Lebanese Pound. Other responsibilities include maintaining monetary stability, regulation of money transfers, and maintaining the soundness of the banking sector. Banking is a very important part of Lebanon's economy with over 100 different banks, which makes the role of BdL particularly important. It currently owns 99.37% of the shares of Lebanon's national carrier, Middle East Airlines. The BdL is also the dominant shareholder of the Intra Investment Company, which in turn owns 53% of Casino du Liban, making it the only central bank worldwide to rule over a Las Vegas–style gambling casino.
Besides the main branch in Beirut, it has branches in Aley, Baalbeck, Bikfaya, Jounieh, Nabatiye, Sidon, Tripoli, Tyre, and Zahlé.
Background
domination of Lebanon, which lasted for more than four centuries, was brought to an end on October 6, 1918, with the entry of the Levant Marine Division into Beirut. The paper money issued by the Turkish Treasury, with a forced exchange rate, suffered the same fate.In order to normalize economic life in the occupied territories and cover the expenses of the allied forces, British authorities imposed the banknotes of the National Bank of Egypt, the Egyptian currency having been, since October 30, 1916, closely linked to sterling and entirely covered by securities issued in sterling.
In accordance with the convention signed between the French and the British governments on September 15, 1919, a new occupying authority started to rule Lebanon. French troops replaced the British, under the command of General Gouraud, who was appointed on October 12, 1919, as "High-Commissioner of the French Republic in Syria and Cilicia, and Commander-in-Chief of the Levant Army". Consequently, the use of the Egyptian currency, suitable for the British Treasury, became inappropriate. To obtain Egyptian pounds, France, being the sole occupying power, had to offer increasing amounts of francs.
During World War I, the French franc had maintained its status thanks to advances from the British and American treasuries. However, in 1919, the French franc registered a drop because of the British government's decision to stop these advances, thus breaking the alliance between the franc, sterling and the dollar, and also because of the United States Government's decision to suspend its regulating role of the associated change rates. In order to replace the Egyptian pound, the French government decided, by Decree N° 129 issued by the High Commissioner on March 13, 1920, to endow Syria with a national currency.
On September 1, 1920, the representative of France proclaimed Great Lebanon. In 1920, the Banque de Syrie et Liban, which had been created for that purpose by the French-controlled Ottoman Bank, was granted the concession of issuing the Syrian–Lebanese currency, which became legal tender on May 1, 1920. Banknotes issued by this bank were reimbursable to the bearer or at sight by checks drawn on Paris, at the rate of FF 20 for £S 1.
As a consequence, an independent, currency-issuing department was established at the Banque de Syrie et Liban. It was responsible for putting in circulation and withdrawing banknotes. Issuances were made either on behalf of the Treasury in Paris or on behalf of the Bank itself.
Concerning commercial operations, the Issuing Department was to provide the Banque de Syrie with banknotes only in exchange of foreign currencies or foreign securities, which constituted, together with the credits granted by the Treasury in Paris, the coverage of the currency in circulation. The Banque de Syrie et du Liban's Issuing Department would later form the basis for the establishment of the Banque du Liban.
Role and function
The Banque du Liban was established by the Code of Money and Credit promulgated on 1 August 1963, by decree no. 13513. It started to operate effectively on 1 April 1964. BDL is a legal public entity enjoying financial and administrative autonomy. It is not subject to the administrative and management rules and controls applicable to the public sector. Its capital is totally appropriated by the State.Governing body
The Banque du Liban is managed by the Governor, who is assisted by four vice governors as well as by the Central Council. By convention, the Governor of the Banque du Liban is always a Maronite Christian.The Governor is the legal representative of the Banque du Liban and has extensive authority over the management of the bank. He is entrusted with the enforcement of the Code of Money and Credit and the implementation of the Central Council's resolutions. Upon the proposal of the Minister of Finance, the Governor is appointed by decree sanctioned by the Council of Ministers, for a renewable six-year term. After the consultation with the governor and upon the proposal of the Minister of Finance, the vice governors are appointed by decree sanctioned by the Council of Ministers for a renewable five-year term. They assist the Governor in managing the bank, carrying out functions specified by the Governor. In addition, they assume their duties as members of the Central Council.
Governors
List of governors of the Banque du Liban:| No. | Image | Name | Term start | Term end | Time in office | Notes |
| 1 | Philippe Takla | August 28, 1963 | June 6, 1967 | Was first elected to the Lebanese parliament in a by-election held in May 1945 in Mount Lebanon as a result of the death of his father, Salim Takla | ||
| 2 | Elias Sarkis | June 7, 1967 | June 2, 1976 | Also served 6th president of Lebanon the same year as the end of his tenure. | ||
| - | Joseph Oughourlian | June 2, 1976 | September 6, 1978 | Ad Interim | ||
| 3 | Michel el-Khoury | September 6, 1978 | January 15, 1985 | Also Served as Defense minister between 1965 and 1966 | ||
| 4 | Edmond Naïm | January 15, 1985 | January 16, 1991 | Politically aligned with the Progressive Socialist Party and was later an MP for the Lebanese Forces. | ||
| Michel el-Khoury | January 16, 1991 | June 7, 1993 | Also Served as Defense minister between 1965 and 1966 | |||
| 5 | Riad Salamé | June 7, 1993 | July 31, 2023 | In February 2022, a subpoena was issued by Judge Ghada Aoun after Riad Salameh failed to show up to court for questioning, while is whereabouts were unknown after a raid in his office and 2 homes, as part of an investigation for alleged misconduct and corruption. This sparked controversy with another security agency that was accused of protecting him from trail. Later in March 21, Salameh along with his brother Raja were charged for illicit enrichment by Ghassan Oueidat but also failed to attend for questioning. | ||
| - | Wassim Mansouri | July 31, 2023 | March 27, 2025 | Ad Interim | ||
| 6 | Karim A. Souaid | March 27, 2025 | Incumbent | Lebanese financial expert, private equity investor, and banking governance specialist and as of March 2025, Lebanon's new central bank governor. He is the Founder and Managing Partner of Growthgate Equity Partners, a private equity firm focusing on investments in the Gulf Cooperation Council and the broader MENA region. Souaid is recognized for his opposition to Hezbollah's influence in Lebanon’s financial system. |
The Central Council
The Central Council sets the monetary and credit policies of the Bank, including money supply, and discount and lending rates. It discusses and decides, among other things, on issues concerning the banking and financial sectors, the establishment of clearinghouses, the issuing of currency and loan requests by public sector entities. The Council decides also on the rules and procedures that govern the staff and operations of the Bank, and on its annual budget and accounts. The members of the Central Council are:- The Governor, as chairman.
- The four vice governors.
- The Director General of the Ministry of Finance, ex officio but strictly as member of the council.
- The Director General of the Ministry of Economy and Trade, ex officio but strictly as a member of the council.
Capital Market Authority
The CMA Board has extensive powers that aim to enhance investor protection and promote investment in the financial markets. It has the power to establish general regulations concerning the establishment and management of stock exchanges, as well as regulations concerning the establishment and functioning of financial intermediation institutions which manage investment funds and collective investment schemes for the public. The CMA board is entrusted by Law 161/2011 to set the code of conduct for stock exchange institutions and their employees, as well as financial service providers and their employees. The CMA board has the power to regulate governance-related issues, such as the obligations of financial instrument issuers to publish and disclose to the public price-sensitive information. In the same context, the CMA board has the power to license the establishment and functioning of financial intermediation institutions, approve securitization activities, ratify the decisions taken by the administration of each stock exchange concerning the registration of securities and financial instruments; and approve the regulations set by the administrations of stock exchanges concerning the transactions undertaken on such stock exchanges.
Moreover, the CMA Board is mandated by law to issue consultations and opinion on draft laws and decrees related to the work and development of the capital markets in Lebanon.