A Sclerotic System

In the aftermath of Rafik Hariri’s assassination, newspapers in Syria were filled with stories of Syrian capital fleeing Lebanese banks for the safety of Damascus and Amman, leading to renewed speculation about just how much Syrian money was deposited in Lebanese institutions. It always was a hazy number. When the UN Security Council passed Security Council Resolution 1559, Hariri’s money man, Fouad Siniora stated on national television that Syrian-related deposits amounted up to 50% of those in Lebanese banks. This figure stood in sharp contrast to “official” estimates by Lebanese bankers, which put Syrian deposits anywhere between 8 and 13%. Whatever the true number is, it a reflection of the inability of Syria’s five new banks –the  Bank of Syria and Overseas (BSO), the International Finance Corporation (IFC), Banque Bemo Saudi Fransi (BBSF), Banque Européene pour le Moyen-Orient (BEMO),  and the International Bank for Trade and Finance (IBTF) – to