A country that lies on a geopolitical faultline yet still fosters a strong banking industry, Lebanon's story is one that warrants special mention at a time of flux for financial services. High liquidity, well-capitalised institutions and good return and risk measures are just some of the qualities, albeit the most crucial ones, that characterise the country's banking sector.
Those characteristics remain in spite of the damage inflicted on the financial services sector worldwide. While a number of major Western financial institutions succumbed to the global malaise triggered by toxic assets based on the US subprime mortgage market, Lebanon's banks were largely immune and even profited from the situation. Over the course of 2008, the value of deposits placed with Lebanese banks averaged $970m per month, and while there was a dip following the collapse of Lehman Brothers, the flow of funds picked up considerably from January 2009 with an average monthly figure of $1.5bn recorded throughout last year.
