Banque du Liban

Banque du Liban
Company type	Public
Industry	Central banking
Founded	August 1, 1963; 63 years ago
Headquarters	Beirut, Lebanon
Area served	Lebanon
Key people	Wassim Mansouri (interim governor, 2023–present)
Products	Lebanese Pound (currency issuance), banking regulation, financial supervision
Owner	State of Lebanon

Banque du Liban (; English: Bank of Lebanon) serves as the central bank of Lebanon, founded on August 1, 1963, and commencing its activities on April 1, 1964.

In 2023, Wassim Mansouri was appointed as the interim governor following the inability to designate a successor to Riad Salameh, who had directed the bank for three decades. Salameh faced accusations involving corruption, money laundering, and operating an extensive Ponzi scheme; he has been labeled "the world’s worst central banker" and is subject to sanctions imposed by Canada, the United Kingdom, and the United States.

The institution is responsible for issuing Lebanon’s currency, the Lebanese Pound, ensuring monetary stability, regulating financial transfers, and supervising the soundness of the banking sector. With a banking network exceeding 100 institutions within Lebanon, BdL holds a vital position in the country’s economic framework. The bank possesses a 99.37% ownership stake in the national airline Middle East Airlines and is the principal shareholder of the Intra Investment Company (IIC), which controls 53% of Casino du Liban. This makes BdL distinctive among central banks due to its ownership of a casino modeled after those in Las Vegas.

BdL maintains branch offices in Aley, Baalbeck, Bikfaya, Jounieh, Nabatiye, Sidon, Tripoli, Tyre, and Zahlé, in addition to its main headquarters located in Beirut.

Background

Ottoman governance in Lebanon concluded on October 6, 1918, when the Levant Marine Division entered Beirut, rendering Ottoman currency invalid.

To stabilize Lebanon’s economy and finance allied military operations, British authorities introduced banknotes from the National Bank of Egypt. These notes were pegged to sterling and backed by sterling securities starting in 1916.

After a 1919 accord between France and Britain, French forces supplanted British troops under General Henri Gouraud’s command. This shift rendered Egyptian currency impractical. As France became the sole occupying power, it was compelled to exchange increasing amounts of francs for Egyptian pounds.

During World War I, the French franc had been supported by British and American advances but experienced depreciation in 1919 when Britain halted these advances and the United States withdrew from exchange rate regulation. To replace Egyptian currency, France issued a decree on March 13, 1920, initiating a national currency for Syria.

On September 1, 1920, Great Lebanon was declared. The Banque de Syrie et du Liban—established by the French-controlled Ottoman Bank—was granted authority to issue Syrian–Lebanese currency, which became legal tender on May 1, 1920. These banknotes could be redeemed in Paris at a fixed exchange rate.

An autonomous currency issuance department was created within Banque de Syrie et du Liban to oversee banknote circulation and withdrawal. Currency issuance was conducted either for the Treasury in Paris or for the bank itself.

For commercial transactions, this department supplied banknotes only against foreign currencies or securities; these assets—alongside Treasury credits—served as backing for the circulating currency. This issuing division ultimately evolved into what is now Banque du Liban.

Role and function

Banque du Liban (BDL) was established under the Code of Money and Credit on August 1, 1963, with operations beginning April 1, 1964. It functions as a legal public entity endowed with financial and administrative independence. Fully capitalized by the State, BDL operates outside standard public sector administrative oversight.

Governing Structure

The Banque du Liban (BDL) is overseen by the Governor, who is assisted by four vice governors and the Central Council. Traditionally, the Governor has always been a Maronite Christian. Acting as the Bank's official legal representative, the Governor holds extensive authority over its administration, ensuring compliance with the Code of Money and Credit and executing resolutions passed by the Central Council. Appointment of the Governor occurs via decree for a six-year term, which can be renewed, based on a recommendation from the Finance Minister. Vice governors are appointed through a similar process for renewable five-year terms; they support the Governor and participate as members of the Central Council.

Governors

Chronological list of Banque du Liban governors:

No.	Image	Name (Signature)	Term start	Term end	Duration in office	Remarks
1		Philippe Takla (1915-2006)	August 28, 1963	June 6, 1967	Template:Ayd	Initially elected to Lebanon’s parliament in 1945.
2		Elias Sarkis (1924-1985)	June 7, 1967	June 2, 1976	Template:Ayd	Subsequently became Lebanon’s sixth president.
-		Joseph Oughourlian	June 2, 1976	September 6, 1978	Template:Ayd	Served in an interim capacity.
3		Michel el-Khoury	September 6, 1978	January 15, 1985	Template:Ayd	Held position of Defense Minister from 1965 to 1966.
4		Edmond Naïm	January 15, 1985	January 16, 1991	Template:Ayd	Affiliated with the Progressive Socialist Party; later served as MP for Lebanese Forces.
'(3)'		'Michel el-Khoury '	'January 16, 1991'	'June 7, 1993'	'Template:Ayd'	'Previously Defense Minister (1965–66).'
'5'	' '	'Riad Salamé '	'June 7, 1993'	'July 31, 2023'	'Template:Ayd'	'Subject to accusations involving misconduct and corruption; investigations resulted in subpoenas and charges related to illicit enrichment in 2022.'
'–'		'Wassim Manssouri '	'July 31, 2023'	'March 27, 2025'	'Template:Ayd'	'Serving as interim Governor.'
'6'		'Karim A. Souaid'	'March 27, 2025'	'Present '	'Template:Ayd'	'A Lebanese financial specialist and private equity investor; founder of Growthgate Equity Partners with a focus on GCC and MENA markets; recognized for opposition to Hezbollah’s influence within Lebanon’s financial sector.'

The Central Council

The Central Council is responsible for determining the Bank’s policies on monetary and credit matters such as regulating money supply and setting discount and lending rates. It addresses issues related to banking and finance sectors, oversees clearinghouse operations, authorizes currency issuance, and reviews public sector loan applications. Additionally, it manages employee regulations and Bank functioning while approving annual budgets and financial statements. The Council comprises:

The Governor (Chair)
Four vice governors
Director General of the Ministry of Finance, ex officio
Director General of the Ministry of Economy and Trade, ex officio

Capital Markets Authority

The Capital Markets Authority (CMA) operates under the guidance of a seven-member board, led by the Governor of Banque du Liban. This board comprises three full-time specialists in capital markets and finance, along with three part-time representatives from essential government bodies: the Ministries of Finance, Economy and Trade, and the Banking Control Commission.

The CMA Board oversees the regulation of stock exchanges and financial intermediaries that manage investment funds and collective investment schemes. Pursuant to Law 161/2011, it establishes codes of conduct for stock exchanges and financial service providers, enforces disclosure requirements for issuers of financial instruments, grants licenses to financial institutions, authorizes securitization transactions, and validates stock exchange rulings concerning securities registration and transaction rules.

Furthermore, the CMA offers advisory input on draft legislation and decrees that impact the advancement of Lebanon’s capital markets.

Special Investigation Commission

Functioning as Lebanon’s financial intelligence unit (FIU), the Special Investigation Commission (SIC) holds judicial powers crucial to anti-money laundering (AML) and counter-terrorism financing (CFT) efforts. It collects and scrutinizes suspicious transaction reports (STRs), carries out investigations, has authority to lift banking confidentiality, freeze assets, and forwards cases to judicial bodies. The SIC also works to prevent asset misuse related to terrorism financing.

The SIC collaborates with both local and international agencies regarding requests for assistance (ROAs), drafts AML/CFT regulations, issues compliance recommendations, and conducts supervisory examinations within banks and reporting entities. Leadership includes Governor Riad Salamé, supported by the president of the Banking Control Commission and a judge appointed to the Higher Banking Commission.

Higher Banking Commission

Established within Banque du Liban in 1967 under Article 10 of Law No 28/67, the Higher Banking Commission consists of:

The Governor of Banque du Liban as Chairperson
A vice-governor appointed by Banque du Liban’s Central Council
The Director General from the Ministry of Finance
A senior judge with a minimum of ten years’ experience, appointed by decree
A member from the Banking Control Commission nominated by the Association of Banks in Lebanon
The chairman of the National Deposit Guarantee Institution (NDGI)

Startup Investment Policy

On August 22, 2013, Banque du Liban introduced "Circular No. 331" aimed at fostering Lebanon’s startup sector and knowledge economy. The Central Bank’s objectives included stimulating GDP growth, lowering unemployment rates, and establishing Lebanon as a regional technology hub.

Despite these ambitions, Circular 331 did not fully meet expectations. Critics pointed to insufficient transparency regarding which startups received funding, job creation metrics, and capital deployment effectiveness. The initiative faced challenges due to Lebanese banks’ traditionally cautious investment approaches.

Circular 331 incentivizes commercial banks to invest in startups by having Banque du Liban guarantee up to 75% of qualifying investments. Notable Lebanese startups benefiting from this policy include:

MEVP – A venture capital firm focusing on early- and growth-stage investments across GCC countries and the Levant, led by Walid Hanna and Walid Mansour.
Berytech – A Lebanese technology business accelerator managing a $50 million fund (Berytech Fund II), chaired by Maroun Chammas.
Leap Ventures – A growth-stage venture capital firm targeting MENA region tech startups at series B funding rounds, headed by Henri Asselly and Hala Fadel.
Presella – An event management technology startup providing a paperless e-ticketing solution for MENA markets.
My ME – A travel planning platform specializing in personalized itineraries for the Middle East and Eastern Mediterranean.
Kashida – The world’s first company converting Arabic letterforms into three-dimensional design objects for home décor and corporate gifts.
Egnyt Technology – A Beirut-based technology incubator managed by Samir Chreim.

Under Circular 331 regulations, a bank’s total startup investments must not surpass 3% of its capital, with no more than 10% allocated to any single startup. Consequently, banks are encouraged to diversify their portfolios by investing in at least ten different startups to optimize benefits.

Additionally, the UK Lebanon Tech Hub was established as a startup accelerator through a partnership between Banque du Liban and the UK government to further strengthen Lebanon’s technology ecosystem.

Allegations of Misconduct

In November 2020, The Wall Street Journal disclosed that the United States alongside other Western nations called for a forensic audit of Banque du Liban (BDL), citing suspicions of money laundering, corruption, and connections with Hezbollah.

The forensic audit conducted in 2023—central to demands from international entities and the International Monetary Fund—uncovered prolonged irregularities by former governor Riad Salameh, including $111 million in "unauthorized commissions" spanning 2015 to 2020. The findings exposed BDL’s financial engineering tactics, which from 2015 enabled domestic banks to attract dollar deposits from abroad and subsequently place them with BDL, earning interest rates exceeding global market standards. This mechanism effectively concealed losses totaling $76 billion. Salameh defended the strategy, stating that the central council regarded it as the "optimal response to a worsening balance of payments" and denied any personal interference in decision-making. BDL asserts that these operations complied with legal frameworks.

On August 10, 2023, sanctions targeting Salameh and his close affiliates were enacted by the United States, United Kingdom, and Canada amid allegations of corruption. Simultaneously, investigations initiated by France, Germany, and Luxembourg probed Salameh and his network for purported financial offenses, including illicit enrichment and laundering approximately $330 million. Both France and Germany issued Interpol notices in May 2023; nevertheless, Lebanon does not extradite its nationals.

Al-Qard Al-Hassan Ban

On July 14, 2025, Banque du Liban circulated a directive forbidding all licensed financial institutions from engaging directly or indirectly with Al‑Qard Al‑Hassan, recognized as Hezbollah’s Iran-supported financial branch. Despite presenting itself as a charitable microfinance entity providing interest-free loans, Al‑Qard Al‑Hassan has been subjected to U.S. sanctions for operating as a covert conduit for Hezbollah’s international fund transfers. This prohibition follows mounting global pressure and previous Israeli attacks on its offices, intensifying examination of Hezbollah’s role within Lebanon’s banking sector.

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