Dear colleagues,

Looking back at the year 2009, and realizing that the sky did not fall on our heads, we can breathe a sigh of relief since it didn’t end up in the gloom and doom scenarios that some gurus predicted. In fact its outcome proved to be brighter than most optimistic forecasts, both on the international and local scenes.

On the international scene, stock markets rebounded sharply to end the year in the plus column. Emerging countries like China, India and Brazil are even experiencing overheating economic expansion and international banks are replenishing their capital accounts.

But despite all these positive developments, caution should remain in high gear, as most of the problems raised by the international crisis have not been resolved and the developed economies are still tattering to regain a respectable rate of growth.

Regulations are being designed to restrict and strengthen control over commercial banks’ activity, unemployment rates are still at the upper end of the charts and the specter of protectionism looms.

As for us, we witnessed an inflow of capital unmatched since the end of the war; economic activity is growing at a comfortable rate, the real estate market is booming and our banking system is envied by most of our neighbors.

Nevertheless, we should not sleep on our laurels but remain vigilant, as most of the capital inflow floats on a hot money plate while inflicting a heavy burden on our banks profitability. On the other hand, the stock market has remained lackluster and our infrastructure is lagging behind our demographic expansion. In the meantime, our political chorus is still discordant.

Let us endeavor to keep our banking system in tiptop shape.

Your colleague
Nakhlé Khoneisser
President, ACI Lebanon