Banque du Liban in Hamra, Beirut. (Credit: P.H.B.)
In the hours following the announcement of the provisional detention of former Banque du Liban (BDL) Governor Riad Salameh, few high-profile Lebanese bankers were willing to comment, while the secretary-general of the Association of Banks in Lebanon did not respond to L'Orient Today's requests.
Salameh was notified of his custody following a hearing in Beirut, to which he was summoned by acting Prosecutor General at the Court of Cassation, Jamal Hajjar, as part of an investigation involving previous transactions between the central bank and the Lebanese financial company Optimum Invest.
The only banker who agreed to speak on the record was the president of Lebanese Swiss Bank, Tanal Sabah, who said he learned the news "on social media." Although he admitted that he "did not have much information about how it happened, the reasons for this arrest, or what it means for the country and the banking sector," he stated that "any measure taken to expose the rampant corruption established by Riad Salameh in the country is welcome."
The governor, who had been in office since 1993, is accused of being the architect of the financial schemes that facilitated corruption in the country, an accusation he has consistently denied. "I hope the judicial process does not disappoint the Lebanese public, who have been waiting for this moment for a long time," Sabah added.
Destructive Monetary Policy
Another bank executive, who wished to remain anonymous, expressed being "surprised" by the detention of the former senior official, who was replaced by Wassim Mansouri at the end of July 2023. "I’m surprised because I believe he has significant local and international support, and I’m amazed they managed to take such action against him," the banker said.
"What bothers me about this situation is that he will likely be prosecuted for actions far less reprehensible than betraying his mission as central banker by implementing a destructive monetary policy for the country," he added.
A third banker, also refusing to be named, said he learned of the news through the media. Distancing himself from the core of the issue, which he admitted to following only from afar, he nevertheless expressed confidence in the Lebanese judiciary's ability to handle the case and determine Salameh's guilt or innocence. He does not believe this new development will affect the sector, either positively or negatively, but stated that it is a positive step for the country as a whole. Finally, a fourth banker, also anonymous, questioned the future repercussions of this case, "It really depends on the concrete evidence the magistrate has in his possession."
