Despite difficult global conditions, Lebanese banks enjoyed bumper years in 2009 and 2010, producing record growth in assets, deposits and profits in 2010 and strong overall performances. With a huge growth in lending contributing to 8% economic growth in 2010 and an expansion in overseas operations, the banks looked set to continue the trend in 2011. However, the political upheaval in the Middle East and north Africa (MENA), as well as an uncertain political situation at home, has taken some of the shine off Lebanon's positive outlook.
Nevertheless, despite the vagaries of internal and regional politics, confidence in Lebanon’s well-regulated banking sector continues apace. Even accusations of money laundering against the Lebanese Canadian Bank (LCB) in February by the US Treasury, which could have been highly damaging, have been defused by quick action from the central bank, Banque du Liban. This resulted in LCB's agreed merger with another Lebanese bank, Société Générale de Banque au Liban. Banque du Liban's governor, Riad Salameh, says that other Lebanese banks were not affected by the LCB incident and that confidence in the Lebanese banking sector has not been shaken (see interview with Mr Salameh and box for this article).
