The banking sector continues to contract, with no improvement in prospect, with a decline of $ 4.7 billion in assets of financial institutions from the start of the year until May. Over the same period of 2020, this contraction reached $ 12.9 billion. This decrease in the contraction would be linked to the implementation by the monetary authorities of withdrawal restrictions including in Lebanese pound with circulars 151 and 158 of the Banque du Liban. Deposits from non-residents only contracted by $ 0.6 billion due to capital controls and nearly $ 4 billion due to restrictions on withdrawals as well. 80.5% of deposits are dollarized, also up due to the loss of confidence in the Lebanese pound and despite a drop in dollar interest rates to 0.42% against 1.85% for deposits in Lebanese pound. Shareholder capital is also in free fall and is now estimated at $ 17 billion in May 2021 compared to $ 19.9 billion at the end of 2020 and $ 20.7 billion in 2019, indicating that banking institutions continue to face significant losses. financial despite the measures recommended by the Banque du Liban to increase the equity capital of these institutions.