The audit report conducted by Alvarez & Marsal on Banque du Liban (BDL) spanning from 2015 to 2020 marks the initial externally assessed review since BDL's establishment in 1964. The examination reveals instances of mismanagement within BDL under the sole governance of the Governor, characterized by arbitrary accounting practices, concealed losses, and unexplained seigniorage income. Notably, the report highlights questionable transactions involving substantial amounts and individuals linked to the Governor's family. BDL's flawed financial strategies resulted in a $60 billion deficit in foreign exchange reserves, triggering a banking crisis exacerbated by insufficient governmental oversight and mishandling of liquidity by banks. Despite the persisting financial turmoil, marked by frozen bank deposits and unaccountable officials, the report proposes a potential path to financial recuperation through immediate implementation of legal and procedural reforms, necessitating responsible governance.
Arabic version: مصرف لبنان: تحليل جنائي
http://hdl.handle.net/10938/24539
Includes bibliographical references (page 20)
