Lebanese banks 101

We Lebanese, always brag about how great and solid our banking sector is, and how Lebanese banks managed to stay away from the global financial crisis.

But have you ever wondered why Lebanese banks are so profitable ?

Even though I'm definitely not a financial expert, here is my humble explanation :

1st - Lebanese banks (privately held) hold 80 % of the public Lebanese debt. This means that they are making huge money from the interests service, where the majority of the yearly state budget spending goes.

2nd - Lebanese banks are tightly governed by the central bank who prohibited them from speculating with high risk financial products (this is why Lebanon was spared from the financial crisis)

3rd and most importantly (and this is the core subject of this post) : they are suit-wearing thieves as they charge us, customers on every single transaction we make (from statement of account to phone bill payment to cheque deposit etc...)

But the most outrageous issue is 'the date de valeur' trick !!! let me explain :

Suppose you cash deposit 1000 usd to your account. They'll give you a 'date de valeur' of today +8 days. This means that the money wont be effectively available for use until 8 days have passed !!!

This means that if you did not have any money on your account before the deposit, you wont be able to withdraw any dime from your account until 8 days have passed !!

Even though you've just handed 1000 usd to the teller, she will tell you with a smile (yes they are very polite !!!) that you have nothing on your account!!!!

Bottom line: better keep the cash on you.

And I am not mentioning the mediocrity of their online services (if they exist)

I cant imagine what would a French consumer protection organisation would say about this illegal practice ?? Do you imagine 'UFC que choisir' working in Lebanon ????

Khay it feels so good to bad mouth them !!