Lebanon's commercial banks ended July 2026 holding $100.42 billion in combined assets, down 2.18% from July 2025. The headline figure has barely budged in months, hovering just above the $100 billion mark since March. What has changed is the shape of the balance sheet underneath it.
The numbers come from the consolidated balance sheet of Lebanon's commercial banks, analyzed by BLOMInvest Bank in its monthly economic digest published on September 9.
Three Quarters of the Sector Sits at the Central Bank
Currency and deposits held with the central bank made up 74.97% of all bank assets in July, at $75.3 billion, a 4.69% drop over the year. Deposits placed with Banque du Liban accounted for 99.93% of the sector's total reserves and also came to $75.3 billion, down 4.65% annually.
Vault cash in Lebanese pounds shrank far faster than any other asset line, falling 37.72% year on year to $55.42 million. That is a rounding error against a $100 billion balance sheet, but it shows how little physical lira the banks are choosing to keep on hand.
Lending and Securities Keep Contracting
Claims on resident customers, the line that captures lending inside Lebanon, fell 7.79% to $4.1 billion. That is 4.06% of total assets. For a banking sector of this size, it means domestic credit has effectively stopped being a core business.
The resident securities portfolio dropped 8.98% to $4.81 billion, or 4.79% of assets. Eurobond holdings inside that portfolio stood at $2.2 billion net of provisions, a 2.09% decline.
Claims Abroad Are the Only Asset Line Growing
Against all of that contraction, one asset account expanded. Claims on the non-resident financial sector rose 9.56% year on year to $5.9 billion. Banks now hold more in claims on foreign financial institutions than they do in loans to customers at home.
On the other side of that relationship, non-resident financial sector liabilities fell 3.39% to $2.3 billion, equal to 2.28% of total liabilities.
Resident Deposits Fall, Lira Deposits Edge Up
Resident customers' deposits remained the single largest liability at 63.23% of the total, falling 4.50% to $63.5 billion. Foreign currency deposits, which are 98.65% of that pool, dropped 4.59% to $62.64 billion. Lira deposits moved the other way, rising 2.11% to $856.52 million.
Non-resident deposits held up far better, slipping only 0.25% to $21.25 billion, or 21.16% of liabilities. Within that, lira holdings rose 0.83% to $41.71 million while foreign currency deposits declined 0.25% to $21.21 billion. Depositors abroad, in other words, are staying put while residents continue to draw down.
The Capital Account Swings Into Growth
Capital accounts stood at $5.4 billion in July, up 12.59% from July 2025, with roughly 10% of that held in Lebanese pounds. A month earlier, BLOMInvest reported capital accounts at $5.05 billion and down 3.52% year on year. That move from annual contraction to double-digit annual growth in the space of one month is the sharpest reversal anywhere on the sheet.
Where the Restructuring Law Stands
Parliament passed amendments to the banking restructuring law in August 2026, reshaping the Higher Banking Commission, the BDL body that decides which lenders are restructured and which are liquidated. The International Monetary Fund called the amendments a major step and said effective implementation of the new resolution framework is critical. The fund wants Lebanon to pass the Financial Stabilization and Deposit Recovery Law before a rescue package advances.
Cabinet's proposal on that law would have banks cover 40% of deposit recovery costs, leaving a reported $70 billion in losses assigned to depositors, alongside a reported $22 billion in repayments to smaller depositors spread across four years. The World Bank now projects Lebanon's economy will contract 6.4% in 2026, reversing an earlier forecast of 4% growth. The August balance sheet, due next month, will show whether July's jump in capital holds.
