Bank Closures and Withdrawal Restrictions Anger Lebanese Citizens

By Jamie Redman

Lebanese citizens have been dealing with economic hardship, as the country’s central bank imposed customer withdrawal limits last October. The problems have continued over the last two months, as ATMs have stopped dispensing cash and bank branches close doors in fear of angry clients. Regional reports disclose Lebanese bank customers often wait for hours in long lines at local branches only to be told the bank’s cash reserves have run dry.

Also read: Problems Escalate in Venezuela as Millions Rush to Spend Petros

Lebanon’s Association of Banks Shuts Banks Down Again as Protests Continue

During the last few months, banking customers in Lebanon have been dealing with withdrawal limits and cash shortages throughout the country. News.Bitcoin.com reported on the start of the friction between the country’s citizens and Lebanon’s central bank. At the time the financial institution (Banque du Liban or BDL) imposed cash withdrawal limits across the country and bank customers were only allowed to withdraw $1,000 per week.

These days, long lines at ATMs and bank branches are a common sight in Lebanon.

After the withdrawal restrictions, Lebanese citizens began protesting as the nationwide cash crisis saw emptied ATMs and a slew of banking institutions closed. The problems continued into November, as banks remained closed because they were constantly dealing with protestors and angry clients. Demonstrators say Lebanon’s central bank and the country’s smaller financial institutions mismanaged the country’s wealth.

Branches have armed security when they are open for business.

In 2020, the situation in Lebanon remains the same and local reports detail on January 4, banks in northern Lebanon started closing again. Lebanon’s National News Agency said that lenders “balked at customer anger over a liquidity crisis.” AFP reports that banks in the northern region of Akkar locked the doors and shut down on Friday and Saturday. Sources noted that Lebanon’s Association of Banks called the branches and told them to shut down “until further notice.”

Lebanon’s citizens have been protesting the BDL enforced withdrawal restrictions since October 16, 2019.

A 10-Hour Standoff Between Bank Employees and an Angry Customer

AFP also added that angry customers went to a bank office in Halba in order to protest the withdrawal limits. The demonstration ended with a 10-hour standoff between a customer and the bank’s officials. The customer said he wouldn’t leave the bank branch unless he was compensated with his money, but he was escorted out by law enforcement to a local hospital. As the man was ushered to the clinic, bank officials promised the man his funds were safe. That same day, Lebanon’s Association of Banks made a call to certain branches and told them to shut down. The banking organization cited the demonstrations as a “threat to the lives and safety banking employees.”

Banque du Liban (BDL)

The news from Lebanon follows the restrictions on withdrawals Indian banks levied after the Reserve Bank of India (RBI) imposed strict restrictions at the end of September. Similarly to the Lebanese situation, Indian bank clients protested the rules and several arrests took place after the RBI placed regulatory guidelines on more than 100 branches.

In Lebanon, it’s become a common sight to see people crying or screaming inside bank branches as Lebanese banking clients believe financial institutions have mismanaged their life savings. Last Friday, Lebanon’s Melhem Khalaf, the head of the Lebanese Bar Association, said the Lebanon central bank’s withdrawal restrictions are “unconstitutional.”

What do you think of the situation at Lebanese banks and lending institutions? What do you think of Lebanon’s central bank restricting people from accessing their savings? Do you think cryptocurrencies are the answer to problems like these? Let us know in the comments section below.


Images courtesy of Shutterstock, Reddit, Al Jazeera, Wiki Commons, Pixabay, and Fair Use.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

This article was sourced from Bitcoin.com

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

Subscribe to Activist Post for truth, peace, and freedom news. Become an Activist Post Patron for as little as $1 per month at Patreon. Follow us on SoMee, Flote, Minds, Twitter, and Steemit.

Provide, Protect and Profit from what’s coming! Get a free issue of Counter Markets today.


Activist Post Daily Newsletter

Subscription is FREE and CONFIDENTIAL
Free Report: How To Survive The Job Automation Apocalypse with subscription

Be the first to comment on "Bank Closures and Withdrawal Restrictions Anger Lebanese Citizens"

Leave a comment