Banque de Syrie et du Liban

Last updated
Banque de Syrie et du Liban
Industry Banking
Predecessor Imperial Ottoman Bank
Founded1919
Headquarters Paris until 1963, then Beirut, Lebanon
Key people
Ramsay El-Khoury (Chairman)
OwnerEl-Khoury family
Website bslbank.com

The Bank of Syria and Lebanon, from 1919 to 1924 Banque de Syrie, from 1924 to 1939 Banque de Syrie et du Grand-Liban, then Banque de Syrie et du Liban (BSL) from 1939 to 1963, was a French bank that was carved out from the Imperial Ottoman Bank following World War I and granted a central banking role in what would become Syria and Lebanon under French mandate and in the early years of the two countries' independence.

Contents

The BSL's activities in Syria were nationalized in 1956 following the Suez Crisis. In Lebanon, it was reorganized in 1963 as its central banking functions became the country's central bank, the Banque du Liban, and its commercial activity was continued as the Beirut-incorporated Société Nouvelle de la Banque de Syrie et du Liban (SNBSL). [1] That bank came under Lebanese ownership in 1987 and was rebranded BSL Bank in 2012.

History

Background

Khan Antoun Bey in the Beirut Souks, first location of the Ottoman Bank branch in Beirut Beyrout. Khan Antonin Bey-Ottoman Bank - Bonfils. LCCN93500453.tif
Khan Antoun Bey in the Beirut Souks, first location of the Ottoman Bank branch in Beirut
Second location of the Imperial Ottoman Bank's Beirut branch on Place des Canons
, later Grand Hotel Khedivial Beirut Branch (14922975921).jpg
Second location of the Imperial Ottoman Bank's Beirut branch on Place des Canons, later Grand Hôtel Khédivial
Third location of the Imperial Ottoman Bank's Beirut branch at the northern end of Allenby Street, which became the first local head office of the Banque de Syrie in late 1921 Beirut Branch (14925699962).jpg
Third location of the Imperial Ottoman Bank's Beirut branch at the northern end of Allenby Street, which became the first local head office of the Banque de Syrie in late 1921

The Ottoman Bank opened a branch in Beirut immediately after its creation in 1856. It was reorganized in 1863 as the Imperial Ottoman Bank, known by its French acronym BIO for Banque Impériale Ottomane. In the 1890s, the BIO was instrumental in developing the Port of Beirut and the Beirut-Damascus railway and extensions in Syria. [2] The branch was initially located inside Khan Antoun Bey  [ ar ] in the Beirut Souks; in 1892 it moved to a new building on place des canons, now Martyrs' Square; and in 1906 to another new building in Western architectural style on the waterfront at the northern end of the street later named Allenby Street, while the previous location was repurposed as the Khedivial Hotel. [3] The former two venues were destroyed during the Lebanese Civil War and not rebuilt during postwar reconstruction, while the latter was replaced before the war by the high-rise office building known as One Allenby Street.[ citation needed ]

Following Ottoman defeat during World War I, the territories of what later became Syria and Lebanon were ruled by the Occupied Enemy Territory Administration that brought together France, the UK and the Hashemites.

French mandate

Building at 16, rue Le Peletier in Paris, the bank's head office from 1919 to 1927 LePeletier16.jpg
Building at 16, rue Le Peletier in Paris, the bank's head office from 1919 to 1927
Building at 12, rue Roquepine in Paris, head office from 1927 Paris Roquepine BSL.jpg
Building at 12, rue Roquépine in Paris, head office from 1927

In response to this new environment, the BIO decided in late 1918 to form a French bank, initially named Banque de Syrie and headquartered in Paris, in which the BIO initially retained 94.45 percent ownership. [4] The new bank held its constituent general meeting in Paris on 2 January 1919. [5] In March 1920, the French authorities granted the new bank the privilege to issue currency notes. The BIO, by then controlled by the Banque de Paris et des Pays-Bas (BPPB), transferred to the new entity its existing branches in Aleppo, Alexandretta, Beirut, Damascus, Hama, Homs, Sidon, Tripoli and Zahlé, a transaction that was only completed in late 1921.

The formalization in 1923 of France's Mandate for Syria and Lebanon led to the bank's first name change to Banque de Syrie et du Grand-Liban, on 5 March 1924. It eventually adopted the name Banque de Syrie et du Liban on 23 May 1939. It kept operating during World War II despite the breakdown of communication between occupied France and its Levantine mandate territories following the Syria–Lebanon campaign of June–July 1941. [5]

The bank opened new branches in Latakia in the early 1920s, Antioch in 1925, Deir ez-Zor in 1930, and by 1937 also had branches in Aley, Idlib, Qamishli, As-Suwayda, and Tartus. It also had a representation in Marseille at the Ottoman Bank's branch. [6] Its Parisian head office was initially at 16, rue Le Peletier, in a building acquired by the Banque de l'Union Parisienne in 1913, [7] :40 and next door to the BIO's older affiliate the Banque Franco-Serbe (est. 1910). It moved on 16 May 1927 to 12, rue Roquépine. [5] In 1939, Türkiye annexed the Hatay State, including Alexandretta (now İskenderun) and Antioch (now Antakya). Later on the BSL also opened branches in Daraa, Al-Hasakah, and Raqqa in Syria, as well as Baalbek and Tyre in Lebanon. [5]

The Lebanese pound was introduced in 1939 as a separate currency from the Syrian pound, following on earlier introduction of Syrian pound notes that included a mention of Lebanon but were interchangeable with other Syrian pound notes. [8] Even so, the two currencies, both issued by the BSL, remained pegged to a reference currency (the French franc until 1941, then the British pound) and thus to each other until in 1948, after the two countries' independence.

Arab Nationalist era

In 1953, the Second Syrian Republic authorities withdrew the BSL's issuance privilege of the BSL, which after a three-year transition was taken by the newly established Central Bank of Syria in 1956. Later in 1956, all BSL operations in Syria were nationalized in the aftermath of the Suez Crisis, and taken over by the state-owned Commercial Bank of Syria. [9]

In Lebanon, the country's central bank, the Banque du Liban, was formed in 1963 from the issuance-linked operations of the BSL. [10] The BSL's commercial operations were taken over by a new Lebanese entity controlled by the BPPB, the Société Nouvelle de la Banque de Syrie et du Liban (SNBSL), created on 2 April 1963, and kept operating under that brand for half a century. [11] In the process of separation, the SNBSL secured ownership of the recently constructed BSL head office building on rue Riad El-Solh in downtown Beirut, with financing from the BPPB-controlled Ottoman Bank. The modern building, which had been built in the early 1950s and inaugurated in 1955, hosted both organizations until the inauguration of the Banque du Liban's own new head office in late March 1964. [12] [13]

Later developments

The SNBSL kept operating during the Lebanese Civil War. [11] In 1987, the BPPB, by then known as Paribas, sold its majority stake to Lebanon's El-Khoury family group. Its head office building on rue Riad El-Solh was restored in the 1990s from wartime damage. On 4 July 2012, the SNBSL was rebranded as BSL Bank. [14]

Leadership

Banknotes

See also

Related Research Articles

<span class="mw-page-title-main">Syrian pound</span> Currency of Syria

The Syrian pound or lira is the currency of Syria. It is issued by the Central Bank of Syria. The pound is nominally divided into 100 piastres, although piastre coins are no longer issued.

<span class="mw-page-title-main">Mandate for Syria and the Lebanon</span> League of Nations mandate of France in the Middle East (1923–1946)

The Mandate for Syria and the Lebanon was a League of Nations mandate founded in the aftermath of the First World War and the partitioning of the Ottoman Empire, concerning Syria and Lebanon. The mandate system was supposed to differ from colonialism, with the governing country intended to act as a trustee until the inhabitants were considered eligible for self-government. At that point, the mandate would terminate and a sovereign state would be born.

<i>Banque de lIndochine</i> Defunct French colonial bank

The Banque de l'Indochine, originally Banque de l'Indo-Chine, was a bank created in 1875 in Paris to finance French colonial development in Asia. As a bank of issue in Indochina until 1952, with many features of a central bank, it played a major role in the financial history of French Indochina, French India, New Caledonia, French Polynesia, and Djibouti, as well as French-backed ventures in China and Siam. After World War II, it lost its issuance privilege but reinvented itself as an investment bank in France, and developed new ventures in other countries, such as Saudi Arabia and South Africa.

<i>Banque Belge pour lÉtranger</i>

The Banque Belge pour l'Étranger was a Belgian bank that channeled many international banking operations of its controlling shareholder the Société Générale de Belgique (SGB) in the first half of the 20th century. It was originally established by the SGB in 1902 in Brussels as the Banque Sino-Belge, at the request of King Leopold II of Belgium.

<span class="mw-page-title-main">Charles Debbas</span> Lebanese Politician

Charles Debbas was a Greek Orthodox Lebanese political figure. He was the first President of Lebanon and served from 1 September 1926 to 2 January 1934, under the French Mandate of Lebanon. He also served as the Speaker of the Parliament of Lebanon from January to October 1934.

<span class="mw-page-title-main">Banque du Liban</span> Central bank of Lebanon

Banque du Liban is the central bank of Lebanon. It was established on August 1, 1963, and became fully operational on April 1, 1964. In 2023, Wassim Mansouri stepped up as interim governor of the Banque du Liban after Lebanon failed to name a successor to Riad Salameh, whose term finished in July 2023. Salameh, who was chairman for 30 years, has been accused of corruption, money laundering and running the largest Ponzi scheme in history; he was additionally labeled "the world’s worst central banker". He is currently under sanctions by Canada, the United Kingdom and the United States.

<span class="mw-page-title-main">Ottoman Bank</span> Former bank in the Ottoman Empire, then Turkey

The Ottoman Bank, known from 1863 to 1925 as the Imperial Ottoman Bank and correspondingly referred to by its French acronym BIO, was a bank that played a major role in the financial history of the Ottoman Empire. By the early 20th century, it was the dominant bank in the Ottoman Empire, and one of the largest in the world.

<span class="mw-page-title-main">Lebanese pound</span> Currency of Lebanon

The lira or pound is the currency of Lebanon. It was formerly divided into 100 piastres but, because of high inflation during the Lebanese Civil War (1975–1990), subunits were discontinued.

Michel Chiha (1891–1954) was a Lebanese banker, a politician, writer and journalist. Along with Charles Corm, Petro Trad and Omar Daouk, he is considered one of the fathers of the Lebanese Constitution. His ideas and actions have had an important influence on the shaping of the modern Lebanon.

<span class="mw-page-title-main">France–Lebanon relations</span> Bilateral relations

France–Lebanon relations are the international relations between France and Lebanon. France, the previous administrative power, enjoys friendly relations with Lebanon and has often provided support to the Lebanese. The French language is widely spoken fluently throughout Lebanon and is taught as well as used as a medium of education in many Lebanese schools. Both nations are members of the Francophonie.

<span class="mw-page-title-main">Postage stamps and postal history of Lebanon</span>

This is a survey of the postage stamps and postal history of Lebanon, formerly known as Liban.

<span class="mw-page-title-main">Syrian Federation</span> Country in the Middle East

The Syrian Federation, officially the Federation of the Autonomous States of Syria, was constituted on 28 June 1922 by High Commissary Gouraud. It comprised the States of Aleppo, Damascus, and of the Alawites, spanning an area of 119,000 to 120,000 km2. It was officially dissolved by decree of 5 December 1924 "which received its application starting on 1 January 1925".

<span class="mw-page-title-main">Banque de l'Union Parisienne</span> French Investment Bank

The Banque de l'Union Parisienne was a French investment bank, created in 1904 and merged into Crédit du Nord in 1973.

Byblos Bank

Byblos Bank is a Lebanese bank established in 1963 and headquartered in Beirut, Lebanon. It is the country’s third largest bank by assets. It is one of the Alpha banks in Lebanon, along with Banque Libano-Française S.A.L., Bank Audi, BLOM Bank, and Fransabank, which are its main competitors. As at 31 July 2018, it operates 88 branches in Lebanon.

<span class="mw-page-title-main">Boutros el-Khoury</span> Lebanese businessman, banker and industrialist

Sheikh Boutros el-Khoury was a Lebanese businessman, banker and industrialist. A successful self-made man, Khoury managed to build a large commercial and industrial empire, and was one of Lebanon's most well-established businessmen from the 1950s to the 1970s. Khoury was an important figure of the Lebanese ruling elite in the second half of the 20th century. He played a decisive role in the development of economic legislation, and used his expertise in the resolution of several major national crises.

<i>Compagnie Algérienne</i> French bank

The Compagnie Algérienne, from 1942 to 1948 Compagnie Algérienne de Crédit et de Banque, was a significant French bank with operations in Algeria, Morocco, Tunisia and Lebanon as well as mainland France. It was formed in 1877 in a restructuring of its predecessor entity, the Société Générale Algérienne, itself founded in 1865-68. The Compagnie Algérienne eventually merged in 1960 with the Banque de l'Union Parisienne. Following a series of subsequent restructurings, its main successor entities as of 2022 are the Crédit du Nord in France, the Crédit populaire d'Algérie in Algeria, the Banque de Tunisie in Tunisia, Attijariwafa Bank in Morocco, and the Banque Libano-Française in Lebanon.

<span class="mw-page-title-main">Banque Franco-Serbe</span> French bank founded in 1910

The Banque Franco-Serbe was a French bank founded in 1910 to support French projects in the Kingdom of Serbia. It was a major financial institution in Serbia, then the Kingdom of Serbs, Croats and Slovenes and Kingdom of Yugoslavia until World War II.

<i>Crédit Foncier dAlgérie et de Tunisie</i> French bank

The Crédit Foncier d'Algérie et de Tunisie was a French colonial bank. It was originally founded in 1880 as the Crédit Foncier et Agricole d'Algérie, an Algerian affiliate of Crédit Foncier de France, and took its name CFAT in 1909 following expansion to Tunisia. In 1963, following Algerian independence, it renamed itself as Société Centrale de Banque (SCDB). It was acquired by Société Générale in 1971 and eventually absorbed by it in 1997. Its former overseas operations have become part of Banque Nationale d'Algérie in Algeria, Amen Bank in Tunisia, Société Générale in Morocco, and Fransabank in Lebanon.

References

  1. Samir Saul (2004), "La Banque de Syrie et du Liban (1919-1970) : banque française en Méditerranée orientale", Entreprises et histoire, 31: 71–92
  2. "Financing the Beirut-Damascus Railway". BNP Paribas.
  3. Audrey Hage (March 2009), La place des Martyrs comme reflet des conflits socio-politiques de la société libanaise
  4. "La Banque de Syrie et du Liban, bras financier de Paribas au Levant". BNP Paribas.
  5. 1 2 3 4 5 6 7 8 "Banque de Syrie (filiale de la Banque ottomane)" (PDF). Entreprises Coloniales Françaises. 2015.
  6. "Banque de Syrie et du Grand Liban 1937 publicité". ebay.
  7. Hubert Bonin (2011), La Banque de l'Union Parisienne (1874/1904-1974). De l'Europe aux Outre-Mers, Publications de la Société française d'histoire des outre-mers
  8. Armelle Huet (22 December 2016). "À la rencontre de la livre libanaise". Le Commerce du Levant.
  9. Hicham Safieddine (2019), "Introduction", Banking on the State: The Financial Foundations of Lebanon, Stanford University Press
  10. Ivy Wang (2019). "A Balance Sheet Analysis of the Banque de Syrie et du Liban" (PDF). Johns Hopkins University.
  11. 1 2 3 4 Margaux Bergey (5 March 2011). "Roland Pringuey, une vie libanaise". L'Orient-Le Jour.
  12. Michel Rouvière (1997). "Rue des Banques". Discover Lebanon.
  13. George Arbid (2020). "Modern Architecture in Lebanon: Banque du Liban (BDL)". Banque Libano-Française.
  14. 1 2 "About BSL Bank". BSL Bank.
  15. "The Chargé in Lebanon ( Bruins ) to the Department of State". U.S. Department of State / Office of the Historian. 4 June 1951.