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 French language inscription "Banque du Liban" on the headquarters of theBank of Lebanon. | |
| Headquarters | Beirut,Lebanon |
|---|---|
| Established | August 1, 1963 (62 years ago) (1963-08-01) |
| Ownership | 100%state ownership[1] |
| Governor | Karim A. Souaid |
| Central bank of | Lebanon |
| Currency | Lebanese pound LBP (ISO 4217) |
| Reserves | $14.7 billion |
| Bank rate | 2.75% |
| Interest on reserves | 4.00% |
| Website | www |
Banque du Liban (Arabic:مصرف لبنان;English: Bank of Lebanon) is thecentral bank ofLebanon. 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.[2] Salameh, who was chairman for 30 years, has been accused of corruption, money laundering and running the largestPonzi scheme in history; he was additionally labeled "the world’s worst central banker".[3][4][5] He is currently under sanctions by Canada, the United Kingdom and the United States.[6]
One of the main responsibilities of the bank is issuing Lebanon's currency, theLebanese 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.[7] The BdL is also the dominant shareholder of theIntra Investment Company (IIC), which in turn owns 53% ofCasino du Liban, making it the only central bank worldwide to rule over aLas Vegas–style gamblingcasino.[8]
Besides the main branch inBeirut, it has branches inAley,Baalbeck,Bikfaya,Jounieh,Nabatiye,Sidon,Tripoli,Tyre, andZahlé.
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Ottoman domination of Lebanon, which lasted for more than four centuries, was brought to an end on October 6, 1918, with the entry of theLevant Marine Division into Beirut. The paper money issued by theTurkish 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 thebanknotes of the National Bank ofEgypt, 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 theFrench and theBritish governments on September 15, 1919, a new occupying authority started to rule Lebanon. French troops replaced the British, under the command of GeneralGouraud, who was appointed on October 12, 1919, as "High-Commissioner of the French Republic inSyria andCilicia, 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.
DuringWorld 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 thedollar, and also because of theUnited 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, theBanque de Syrie et Liban ("Bank of Syria and of Lebanon"), which had been created for that purpose by the French-controlledOttoman 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 onParis, at the rate of FF 20 for£S 1 .
As a consequence, an independent, currency-issuing department was established at theBanque 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. TheBanque de Syrie et du Liban's Issuing Department would later form the basis for the establishment of the Banque du Liban.
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 thepublic sector. Its capital is totally appropriated by the State.
The Banque du Liban is managed by the Governor, who is assisted by four vice governors as well as by theCentral Council. By convention, the Governor of the Banque du Liban is always aMaronite Christian.[9]
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.
List of governors of the Banque du Liban:[10]
| No. | Image | Name (Signature) | Term start | Term end | Time in office | Notes |
|---|---|---|---|---|---|---|
| 1 |  | Philippe Takla (1915-2006)
| August 28, 1963 | June 6, 1967 | 3 years, 292 days | Was first elected to theLebanese parliament in aby-election held in May 1945 inMount Lebanon as a result of the death of his father,Salim Takla |
| 2 |  | Elias Sarkis (1924-1985)
| June 7, 1967 | June 2, 1976 | 8 years, 352 days | Also served 6th president of Lebanon the same year as the end of his tenure. |
| - |  | Joseph Oughourlian | June 2, 1976 | September 6, 1978 | 2 years, 96 days | Ad Interim |
| 3 |  | Michel el-Khoury | September 6, 1978 | January 15, 1985 | 6 years, 131 days | Also Served as Defense minister between 1965 and 1966 |
| 4 |  | Edmond Naïm | January 15, 1985 | January 16, 1991 | 6 years, 1 day | Politically aligned with theProgressive Socialist Party and was later an MP for theLebanese Forces. |
| (3) | | Michel el-Khoury | January 16, 1991 | June 7, 1993 | 2 years, 142 days | Also Served as Defense minister between 1965 and 1966 |
| 5 | .png) | Riad Salamé | June 7, 1993 | July 31, 2023 | 30 years, 54 days | In February 2022, a subpoena was issued by JudgeGhada 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.[11][12] 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 forillicit enrichment byGhassan Oueidat but also failed to attend for questioning.[13][14] |
| - |  | Wassim Mansouri
| July 31, 2023 | March 27, 2025 | 1 year, 239 days | Ad Interim |
| 6 | Karim A. Souaid | March 27, 2025 | Incumbent | 244 days | 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 theGulf Cooperation Council (GCC) and the broaderMENA region. Souaid is recognized for his opposition toHezbollah's influence in Lebanon’s financial system.[15] |
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 management of the Capital Markets Authority (CMA) is entrusted to a board formed of seven members and chaired by the Governor of Banque du Liban, the central bank of Lebanon. The board is composed of three full-time executive board members who are experts in capital markets, banking and financial affairs, and three part-time members representing ministries and other authorities directly involved in the work of the CMA: The Director General of the Ministry of Finance, the Director General of the Ministry of Economy and Trade and the Chairman of the Banking Control Commission.
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 (or cancel previous ratification of) 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.
The Special Investigation Commission (SIC) is a multi-function financial intelligence unit (FIU) with judicial status. It is the centerpiece of Lebanon'santi–money laundering (AML) and combating the financing of terrorism (CFT) regime, a platform for international cooperation and plays a vital role in safeguarding concerned sectors from illicit proceeds. The SIC's tasks include receiving and analyzing suspicious transaction reports (STRs), conducting financial investigations, lifting banking secrecy, freezing accounts and/or transactions and forwarding them to concerned judicial authorities. With respect to terrorism and the financing of terrorism, the SIC is also empowered to prevent the use of movable or immovable assets. In addition to sharing ML/TF intelligence with counterparts and coordinating with foreign/local competent authorities on requests of assistance (ROAs), the SIC also proposes AML/CFT regulations and issues new regulations and recommendations to concerned parties. AML/CFT supervision via compliance examinations at banks and other reporting entities to ensure proper implementation of prevailing regulations is also among its tasks. The SIC is managed by the Governor Mr. Riad Salamé and assisted by the president of the Banking Control Commission, a professional appointed by the Council of Ministers and the judge appointed to the Higher Banking Commission.[citation needed]
The Higher Banking Commission was established at Banque du Liban in 1967, pursuant to Article 10 of Law No 28/67. It is composed of:
Aug. 22, 2013, Central Bank of Lebanon issued the new investment policy called "Circular No. 331".[16] This aim to support Lebanon's knowledge economy by providing support to the thrivingstartup ecosystem. With this audacious move, Lebanon's Central Bank hopes to increase the country's GDP, decrease unemployment and position Lebanon as the tech hub of the Middle East.[17][18]
The outcomes of the circular have however fallen short of the expectations.[19] Many Lebanon's observers pointed that the initiative lacked transparency: There has been no clear indication of the number of start-up funded, jobs created and money spent.[20][21] The initiative was unable to overcome a major hurdle of the Lebanese economy: banks' extremely risk-averse and conservative attitude towards investment.[22]
Circular No. 331 encourages commercial banks to invest in start-ups. The BDL will guarantee up to 75% of the value of these commercial bank investments in the capital of start-ups that meet the determined criteria.[23] Here are some of the start-ups that are innovative Lebanese companies working in the knowledge economy sector and have contributed to creating jobs.
According to the circular, the total participation of any bank in start-ups may not exceed 3% of the bank's capital, provided the participation of any bank in a single start-up does not exceed 10% of the aforementioned 3%. Thus, commercial banks must invest in at least 10 start-ups if they want to benefit from all the facilities provided to them by BDL.
Thestartup accelerator UK Lebanon Tech Hub is a startup initiative between Banque du Liban and the UK government.[30]
In November 2020,The Wall Street Journal reported that the United States and other Western countries demanded aforensic audit of the Banque du Liban (BDL), as it was accused of money laundering, corruption and links toHezbollah.[31]
In 2023, it was reported that the forensic audit—which had been a key demand of the international community and theInternational Monetary Fund—revealed years of misconduct by the bank's former governorRiad Salameh and $111 million in "illegitimate commissions". The audit covered the 2015–2020 period.[32]
Among other things, the audit report details BDL's practice of financial engineering, which, starting in 2015, it used to allow local banks to attract dollar deposits from abroad and then have the lenders deposit the dollars at BDL. The local lenders were given interest rates higher than international market rates in return. According to the audit, the central bank disguised losses equal to $76 billion through the engineering. Salameh said the bank's central council had found financial engineering to be the "best response to a deteriorating balance of payment" and that he had not "intervened" in decision-making on engineering. BDL has said the operations are legal.[32][33]
On August 10, 2023, theUnited States, theUnited Kingdom, andCanada imposed sanctions on Salameh and a handful of his close relatives and associates due to corruption allegations.[34] Meanwhile,France,Germany, andLuxembourg were investigating Salameh and several close associates over alleged financial crimes, includingillicit enrichment andmoney laundering of $330 million. France and Germany issuedInterpol notices for Salameh in May 2023; however, Lebanon does not hand over its citizens to foreign countries.[32]
On July 14, 2025 it was reported that Banque du Liban, has issued a circular prohibiting all licensed financial institutions from engaging in any direct or indirect dealings withAl‑Qard Al‑Hassan,Hezbollah’s Iran-backed financial arm.[35][36] Though Al‑Qard Al‑Hassan positions itself as a charitable microfinance institution offering interest‑free loans, it has long been under U.S. sanctions for acting as a covert conduit for Hezbollah to channel funds globally . The decision follows escalating international pressure and past Israeli strikes on its branches, reinforcing scrutiny over Hezbollah’s role in Lebanon’s financial system.[35]
Media related toBanque du Liban at Wikimedia Commons
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