Lebanon's banks reopen after 2-week closure due to protests

Lebanon's private banks reopened Friday amid boosted security after a two-week closure because of anti-government protests that have paralyzed the country.

The reopening follows Prime Minister Saad Hariri's resignation this week, a key demand of the protesters, who have blocked major roads and packed into public squares.

Lebanese have been protesting since October 17, demanding an end to widespread corruption and mismanagement by the political class that has ruled the country for the past three decades.

There were concerns that reopening the banks could lead many to withdraw their savings, but by midday the banks appeared to be operating normally.

There were no signs of long lines or frustration at four separate bank branches in downtown Beirut, and customers leaving the branches said they were operating normally.

In other parts of the city, some local banks had people standing in line waiting for their turn, but the crowds appeared to be the size one would expect after a two weeks' closure.

Also, Friday was the beginning of the month, when many employees collect their salaries at the banks.

ATM machines have continued to function throughout the crisis, though many of them stopped dispensing US dollars, which have long functioned as a widely accepted second currency.

The central bank has not imposed any capital controls, which would further undermine confidence in the economy, but the private banks appear to have imposed their own preventive measures.

Some banks are only allowing clients to withdraw USD 2,000 a week in foreign currency, and some have imposed an outright ban on transferring money abroad.

Two other bankers said there are no restrictions on such flow of money to or from Lebanon, adding that some clients are trying to access their blocked accounts before maturity, which is not allowed.

"Transfers are going as normal. There is no capital control," said Nassib Ghobril, the chief economist at Lebanon's Byblos Bank, one of the country's largest lenders.

"The banks are trying to meet as much as possible all the demands of clients."
The protesters have directed much of their rage at the banks, and one of the most popular chants refers to central bank governor Riad Salameh as a "thief."