The Association of Banks in Lebanon participated at the 2nd edition of BDL Accelerate which was held on December 10th and 11th, 2015, at the Forum of Beirut.
BDL Accelerate is a yearly event organized by Lebanon’s Central Bank to gather entrepreneurs, investors and support institutions from key emerging startup ecosystems across five continents.
The French Ambassador, HE Mr. Emmanuel Bonn announced that France is working on creating partnerships between Lebanese and French innovators and startups. He said during the opening: “We are committed to further enhance our cooperation with Lebanon in the sector of innovation, and we are currently in the process of identifying partners and projects to bring together French and Lebanese innovators,” The United Kingdom also announced last year a partnership between British and Lebanese startup companies.
HE the Governor Riad Salameh said that the Central Bank’s aim in 2016 is to launch an electronic trading platform (ETP). “This platform will allow the listing of startups and funds, and will be an exit for those who have a successful company,” he said. “The participants on this platform will be banks, financial companies, brokers, family offices, professionals. This ETP will represent a legal and transparent vehicle for both local and foreign financial companies,” he said.
Salameh added that the Capital Markets Authority will authorize companies wishing to be listed and the participants who want to be part of that platform for trading purposes. “Our real aim is to create liquidity that will serve the startups, among others,” he said.
Salameh said that the Central Bank has embraced the changing world by investing its means and its skills to help Lebanon integrate the new global environment.
“Backing the knowledge economy is one of our approaches for that,” he said.
“We have also made a lot of efforts in other sectors, especially for eco-friendly projects. We have backed financial laws and regulations that kept Lebanon integrated in the globalization of the financial world, and we have always acted to protect our reputation and our integrity,” he added.
Dr. Joseph Torbey, chairman of the Association of Banks in Lebanon, said that since the Central Bank issued Circular 331, a dozen banks or more have so far invested around $250 million in specialized funds established by venture capital firms, which in turn will contribute to the launch and operation of startup companies in the information technology, communications and other creative industries, in exchange for a minority stake in the company.
“It is expected that this type of bank investment in venture capital funds will expand in the future with the growing demand and experience in the local market, and with the availability of more projects that are economically feasible and have good growth prospects,” he said.
“In this respect total bank loans to the private sector, individuals and corporations, reached around $53 billion at the end of October 2015, exceeding in that the country’s GDP,” he added.
Dr. Torbey also noted that credits to the public sector surpassed $37.5 billion, reflecting the commitment of Lebanese banks to the financing of Lebanon’s economy in its private and public sectors.