Risk mitigation practices of the Lebanese banking sector: a proactive approach to maintain resilience through prudential regulations

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Itani Traboulsi, R, 2019. Risk mitigation practices of the Lebanese banking sector: a proactive approach to maintain resilience through prudential regulations. DBA, Nottingham Trent University.

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Abstract

The thesis reflects the student's field of interest and provides a unique exploration of the risk mitigation strategies of the Lebanese banking regulators. Its argument concerns the prudential regulation of financial stability and the key factors involved in maintaining the resilience of the banking system; hence the thesis explores the continuity of the system across the entire Lebanese banking sector and its application in the context of the Middle East.

The thesis reviews and investigates the banking system in Lebanon and the issues derived from external factors imposed on the Lebanese economy. It discusses ways to mitigate risk and looks at the role of the banking authorities and supervision mechanisms that assure all policies and procedures are being implemented correctly by commercial banks. Moreover, the research highlights best practice as applied in the International Standard Banking Practice (ISBP) by the United States (US) and European Union (EU) and compares it to that applied in Lebanon. The aim of the thesis is to leverage the research outcomes to other countries in the Middle East and to make recommendations based on the lessons learned. Additionally, the thesis opens up new avenues for future researchers and practitioners.

The core of the empirical research discussion of this thesis is built around the prudential regulations of the Lebanese banking system. Four sets of ratios and their scope of implementation in the field are investigated: Capital adequacy ratios, Liquidity ratios, Asset quality ratios and Profitability ratios. The research utilises transcripts from interviews with key stakeholders to ascertain their perception of the regulations' value and any problems they perceive with it. An interpretive approach has been employed to assess the likely response of the banking system to economic turmoil. The research has adopted a qualitative methodological approach to present an explanation for the choice of the methodology, which itself was influenced by the author's choice of Interpretivism, that is, the use of Interviews as the method for data collection. As a result, gaps were identified and analysed. The Research Questions, which have been framed and fine-tuned for this, the final document, Document 5 – The Thesis, are illustrated in a conceptual framework. The robustness of the conceptual framework is the result of the critical literature review, which provides an overview of the literature in relation to all the main concepts and ideas that this thesis explores.

The empirical research concludes by identifying the main contributions the results can make to the business and academic fields. Briefly, the results concern the main characteristics of the Lebanese banking sector; the existence of a relationship between financial crisis and banking regulations; the policies and procedures used by Lebanese banks to set their financial ratios and the main indicators used to illustrate the resilience, stability and continuity of the banking sector; the central role played by the economic monitor Banque du Liban (BDL) in maintaining robust monetary policies; the weaknesses of the Lebanese banking sector and the necessity for Lebanese banks to adopt adequate corporate governance as well as the importance of political stability. Finally, the thesis closes by suggesting the importance of the research findings and their application in the context of the Middle East.

Item Type:	Thesis
Creators:	Itani Traboulsi, R.
Date:	February 2019
Rights:	© 2018 Rania Itani Traboulsi. All rights reserved.
Divisions:	Schools > Nottingham Business School
Record created by:	Linda Sullivan
Date Added:	14 May 2019 13:29
Last Modified:	14 May 2019 13:29
URI:	https://irep.ntu.ac.uk/id/eprint/36531