The Banking Executive Magazine - February 2026 Issue 2

Lebanon Fiscal Gap Law Decoded institutional entities, beginning with parliamentary approval and followed by the establishment of mechanisms to distribute losses among the state, central bank, commercial banks, and depositors. Implementation will de- pend on transparent bank-by-bank viability assessments, credible de- positor recovery plans, and strict oversight to ensure that the govern- ment’s pledge of returning up to 85% of deposits within four years is hon- oured. The process will also be tied to negotiations with the International Monetary Fund, whose support hinges on the law’s enforcement, making compliance essential for un- locking international aid. Without strong enforcement, the law risks re- maining symbolic, but with effective execution it could restore confidence in Lebanon’s financial system and lay the foundation for economic stabi- lization. TECHNOLOGIES NEEDED Implementing Lebanon’s Fiscal Gap Law of 2025 will require a mix of fi- nancial, digital, and regulatory tech- nologies to ensure transparency, efficiency, and credibility. At the core, digital banking platforms and secure payment systems will be needed to manage phased depositor recovery and track transactions reli- ably. Blockchain-based ledgers or similar distributed technologies the BANKING EXECUTIVE 12 ISSUE 206 FEBRUARY 2026