Abstract

My thesis is attempting to reshape the financial infrastructure in Lebanon upon a modern geosocial
model. This study of the relationship between the Central Bank and the banking institutions
will form one chapter of the thesis. This research follows the new theories that are
urging many developing countries to abandon the Central Banking regime The analysis has
precisely shown an inefficient Central Bank whether in setting the pre-operational conditions
for banks, or in exercising the prudential controls over their activities. We first found that
current regulations bear unproductive consequences and therefore must be amended. Also,
findings suggest the establishment of new types of financial institutions in order to regenerate
economic development. Finally, the research proposed the deregulation of the settlement
system to avoid a growing credit risk, a fall in the capital adequacy ratio and therefore the
failure to implement the Basel II requirements.