Brawls Erupt Over Lebanon's Banking Overhaul Drive
Escalation persists in Lebanon concerning bank restructuring plans supported by the International Monetary Fund
Lebanon's plan to modernize its financial system, with backing from the International Monetary Fund (IMF), has lit the fuse for a heated counter-attack from critics of the reforms. These adversaries include media outlets, advocacy groups, and influencers who allege that the changes are part of a conspiracy orchestrated by foreign interests.
This pushback has taken the form of unrelenting media criticism, lawsuits targeting civil society organizations, and accusations of smear campaigns. Lebanese talk show hosts and news channels have reignited false rumors of George Soros-funded conspiracies to hurt Lebanon's economy. Independent media outlets have also faced numerous defamation lawsuits, as described by Human Rights Watch as a means to weaponize the law.
The Lebanese government has made little progress in implementing the IMF-demanded reforms since the currency dwindled to just 10% of its original value and bank savings vanished in the 2019 financial disaster, with an estimated loss of over $70 billion. Prime Minister Nawaf Salam and President Joseph Aoun, who assumed power after the Hezbollah movement's power subsided following the recent battle with Israel, face mounting pressure from foreign donors to reform the banking sector. They have pledged to carry out the reforms that their predecessors had failed to execute.
Diala Shehadeh, a lawyer representing Megaphone, one of the media outlets under scrutiny, describes the situation as a "political campaign ... with the goal of defending the interests of the banker class."
Recently, the Lebanese Parliament made significant progress, altering banking secrecy regulations to boost transparency. Previous attempts fell short of IMF expectations. Salam praised this decision as a "vital step towards the desired economic reform we have promised to achieve," setting the stage for holding criminals accountable.
Leading media outlets, however, have condemned the banking secrecy law as a betrayal and oppose provisions allowing for the release of records from the past decade.
The most contentious reforms still lie ahead, and the escalating battle in the media serves as a preview of the challenges that the new government and its agenda will face.
To gain a long-awaited IMF deal, Lebanon must pass legislation modernizing the banking sector, share the financial losses from the 2019 crisis, and establish plans for repaying depositors. The contested question remains: how much of the burden should be borne by the government versus the banking sector.
Ayman Mhanna, executive director of the Samir Kassir Foundation, states that influential players within the banking sector have been driving a narrative in the media to defend their interests. "So far the campaign is not succeeding to actualize its policy goals. This is why we anticipate the campaign to persist and assume a more aggressive stance."
A draft of a banking sector restructuring law has been put before the cabinet, and parliament's finance committee has begun discussing it. However, legislation marshaling plans for distributing losses and repaying depositors has yet to receive cabinet approval.
The Secretary-General of the Association of Banks in Lebanon expressed support for the draft restructuring law, emphasizing the need to find a balance between financial reform and the protection of depositors' rights.
Lebanon's former central bank governor, Riad Salameh, whose policies are widely believed to have precipitated the crisis, was detained last year on charges of financial misconduct, which he denies. Meanwhile, Lebanese banks have long been heavy advertisers on domestic television channels, whose business models rely on backing from bankers and politicians, according to studies by The Policy Initiative, a Beirut-based think-tank.
Numerous media outlets accuse supporters of the clean-up effort of being tools of foreign agendas. "A genuine economic-political octopus lurks in Lebanon," said one report on Lebanese television channel MTV, branding policy advocacy group Kulluna Irada and news providers Megaphone and Daraj as agents of US financier Soros, a claim they dispute. Daraj and Megaphone's websites list the Open Society Foundation established by Soros among their donors.
Some of the groups implicated in such accusations have, in turn, filed complaints against MTV. In one instance, in March 2025, banker Antoun Sehnaoui accused Daraj of damaging Lebanon's foreign relations, "spreading deceptive news to destabilize financial confidence,” according to Daraj's lawyer. Neither MTV nor Sehnaoui responded to requests for comment.
- The financial reforms being proposed in Lebanon, supported by the IMF, have sparked controversy and criticism among some media outlets, advocacy groups, and influencers, who claim the changes are part of a conspiracy.
- Critics of the reforms, such as Lebanese talk show hosts and news channels, have escalated the argument by reigniting false rumors of foreign interference, like those connected to George Soros, and allegations of smear campaigns.
- The Lebanese government, including Prime Minister Nawaf Salam and President Joseph Aoun, are under pressure to implement the IMF-demanded reforms, which have been delayed due to the collapse of the currency and loss of billions in bank savings in the 2019 financial disaster.
- Recently, the Lebanese Parliament amended banking secrecy regulations to increase transparency, hoping to hold criminals accountable and progress towards economic reform promising to address the crisis.
- The banking secrecy law, however, has been denounced by some media outlets as a betrayal and opposed due to provisions that allow for the release of records from the past decade.
- As Lebanon grapples with modernizing its banking sector and regaining financial stability, the escalating tension and polarizing views between supporters and opponents of the reforms will continue to impact the country's business, politics, and general news landscape.
