Lebanon banking reform faces backlash as IMF-backed overhaul sparks media war

Reformist policymakers and civil society allies battle smear campaigns and legal threats as Lebanon struggles to rebuild its banking sector.

A view of the central bank headquarters in Beirut, Lebanon, on July 31, 2023. Photo by Joseph Eid/AFP

By Anna Fadiah and Hayu Andini

Lebanon’s bid to rescue its collapsed economy through an ambitious IMF-backed restructuring plan is triggering a growing wave of resistance, as entrenched interests mobilize against the proposed banking sector reforms. At the center of this unfolding battle is Lebanon’s banking reform agenda, which aims to address the root causes of the country’s devastating 2019 financial meltdown.

Since the onset of the crisis, the Lebanese currency has lost more than 90 percent of its value, and over $70 billion in bank deposits have been wiped out. The International Monetary Fund has consistently called for urgent reforms, including restructuring the banking sector, introducing transparency measures, and ensuring accountability for financial mismanagement. However, progress has been slow, largely due to opposition from powerful business elites and banking executives who stand to lose the most.

Media campaigns and defamation suits target reformers

The current wave of resistance has taken a particularly aggressive form. Civil society organizations, investigative journalists, and reform-minded policymakers have found themselves at the receiving end of what many describe as a coordinated smear campaign. Lebanese talk shows and mainstream news channels have accused NGOs and journalists advocating for Lebanon banking reform of being agents in a foreign conspiracy funded by billionaire philanthropist George Soros.

Independent media outlets such as Megaphone and Daraj, which have reported extensively on financial corruption, now face a series of legal complaints. Human Rights Watch (HRW) has condemned the cases as an abuse of criminal defamation laws designed to silence dissent and intimidate those seeking transparency.

Diala Shehadeh, a lawyer representing Megaphone, called the attacks “a political campaign… with the goal of defending the interests of the banker class.” Analysts suggest the backlash is an attempt by Lebanon’s banking elite to protect themselves from reforms that would expose long-standing malpractice and require financial sacrifices.

Momentum builds for banking transparency

Despite this backlash, Lebanon’s new leadership appears determined to push forward. Prime Minister Nawaf Salam and President Joseph Aoun, both of whom came to power earlier this year following the decline of the Hizbollah-backed coalition, are under intense pressure from international donors to restore the country’s financial credibility.

Last week, parliament passed key amendments to Lebanon’s banking secrecy law, a move hailed by Salam as a vital step toward “economic reform” and holding financial perpetrators accountable. This legislative shift—long demanded by the IMF—allows for retroactive transparency on banking records dating back a decade. While reform advocates welcomed the move, prominent media outlets criticized it as a betrayal of depositors.

The new law has sparked fresh outrage among banking stakeholders who claim it unfairly targets their sector. However, reformists argue that without such transparency, Lebanon banking reform will remain out of reach.

IMF demands far-reaching changes

To secure a long-delayed IMF bailout, Lebanon must now turn its attention to more controversial legislation. Draft laws on bank restructuring and the fair distribution of financial losses have been submitted to parliament. These proposals would define how losses from the 2019 collapse are shared between the state, commercial banks, and depositors.

The secretary-general of the Association of Banks in Lebanon (ABL) voiced concern this week, emphasizing the need for a “realistic balance between financial reform and the protection of depositors’ rights.” Behind the scenes, however, many suspect that key banking figures are seeking to avoid bearing the brunt of the losses.

Ayman Mhanna, executive director of the Samir Kassir Foundation, a Beirut-based media watchdog, noted, “Specific actors in the banking sector who had the most to lose and the most to hide have been those who are investing more heavily in supporting a certain narrative in the media.”

Legal intimidation aims to silence reformist voices

The attempts to derail Lebanon banking reform are not confined to public opinion battles. A growing number of legal cases have been filed against independent media and reformist groups. One of the most prominent cases involves Daraj, which was sued in March 2025 by banker Antoun Sehnaoui for “spreading fabricated news to destabilize financial trust” and “harming Lebanon’s foreign relations.”

MTV, a major Lebanese TV station, has also been accused of leading smear efforts. The network aired segments portraying reform advocates, including Megaphone, Daraj, and policy group Kulluna Irada, as part of a “political-economic octopus” influenced by foreign agendas. These organizations have denied the accusations and point to their public financial disclosures, which list the Open Society Foundation among their funders.

The accused media outlets and NGOs have not remained silent. Some have launched counter-lawsuits, arguing that the charges are politically motivated attempts to silence criticism and derail financial reform efforts.

Banking sector’s role in Lebanon’s media landscape

The banking sector’s influence over Lebanese media is not incidental. A 2023 report by The Policy Initiative, a Beirut-based think tank, highlighted the financial dependence of TV channels on bank advertising. This economic relationship has raised concerns about editorial independence and potential bias against banking reform.

Such dynamics make it challenging for the public to access balanced reporting on Lebanon banking reform. By controlling key media narratives, opponents of reform seek to preserve a status quo that benefits a narrow elite at the expense of the broader population.

Reform efforts continue amid uncertainty

Despite the ongoing resistance, reformist policymakers appear undeterred. Prime Minister Salam has reaffirmed his administration’s commitment to implementing the IMF conditions. “We are not here to protect the interests of any specific group. We are here to ensure that Lebanon has a functioning and fair economy,” he said in a recent address.

Observers caution, however, that time is running out. Without concrete reform, Lebanon risks further economic decline, exacerbating poverty, unemployment, and political instability.

Even as draft legislation makes its way through parliament, the outcome remains uncertain. With opponents ramping up their attacks and reformists doubling down on their agenda, the future of Lebanon banking reform hangs in the balance.

For Lebanon to achieve sustainable recovery, stakeholders agree that transparency, accountability, and equitable burden-sharing are non-negotiable. Whether the current administration can overcome entrenched interests and deliver on these principles will determine the country’s financial future for decades to come.