Overview:

Lebanese commercial banks have renewed lending operations toward year-end 2025, registering a fresh loan portfolio of 794 million dollars. This lending volume represents 17 percent of banks' currently recorded capital bases. The resumption occurs amid ongoing economic constraints and reflects modified credit policies implemented by financial institutions operating within the country's prolonged financial environment.

Details:

Banks recorded fresh lending activity totaling 794 million dollars by late 2025, a significant figure within the context of Lebanon's banking sector. The portfolio's scale—measuring 17 percent against registered bank capitals on their current books—indicates a measured but notable resumption of credit operations. This lending has proceeded without formal regulatory oversight structures and without comprehensive planning frameworks, according to reporting on banking sector activities.

The terms extended to borrowers have become notably stringent. Banks have implemented harsh conditions as preconditions for accessing credit, reflecting heightened risk assessments and capital preservation priorities within the sector. This tightening of credit conditions stands in contrast to more liberal lending practices of previous periods and underscores institutional caution regarding loan performance and recovery prospects.

The absence of coordinated supervision and systematic planning in these lending operations raises questions about standardized practices across institutions. Banks have operated with considerable discretion in structuring individual credit facilities, resulting in varied terms and conditions depending on borrower profile and collateral availability. The decentralized approach to fresh lending reflects current operational realities within Lebanon's fragmented financial architecture.

Outlook:

Investors and analysts are monitoring whether this resumption of lending represents a sustained recovery in credit availability or a temporary adjustment within persistent constraints. The sustainability of fresh lending flows depends on depositor confidence, dollar availability, and confidence in borrower repayment capacity under current economic conditions. The stringent terms now standard in new credit facilities will be a key indicator of whether banks view economic conditions as sufficiently stabilized to warrant broader credit expansion.