Intra Bank
Encyclopedia
Intra Bank was a Lebanese
bank
, and the largest financial institution
in the Middle East
until its collapse in 1966.
and three partners as a currency trading house named International Traders.
Many observers questioned why the Lebanese Central Bank, which was established only two and a half years earlier in April 1964 did not provide liquidity to Intra Bank during the run on the bank. Many press commentators believed that this was due to influence from Lebanese politicians and rivals who were unhappy at the influence and power of Palestinian-born Beidas.
The collapse of Intra Bank brought a swathe of new banking regulations for the Lebanese banking sector, although these were not enough to restore faith in the Lebanese banking sector to its pre-Intra levels.
The circumstances which surrounded Intra's fall remain to this day controversial issues. The surprisingly weak support from the Lebanese government and the very public allegations over Charles Helou
's role in the affair have been attributed to such issues as Beidas' Palestinian origin and envy over Beidas' almost complete control of the Lebanese economy.
By 1985, the Central Bank held 28% of Intra, the Kuwaiti government held 19%, the Lebanese held 10%, the National Bank of Kuwait held 4% and the government of Qatar 3%. Today, the Lebanese government's stake is expected to be privatised in due courser(http://www.samba.com.sa/investment/economywatch/pdf/LebEng.pdf).
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, and the largest financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
until its collapse in 1966.
Foundation and Rise of the Bank
The bank was founded in 1951 by Yousef BeidasYousef Beidas
Yousef Beidas was a Palestinian Lebanese banker...
and three partners as a currency trading house named International Traders.
Collapse and Controversy
The bank stopped payments on October 14, 1966. The collapse of the bank brought the Lebanese economy to a halt and sent shockwaves throughout the Middle East. Intra Bank accounted for 15% of total bank deposits and 38% of deposits with Lebanese-owned banks.Many observers questioned why the Lebanese Central Bank, which was established only two and a half years earlier in April 1964 did not provide liquidity to Intra Bank during the run on the bank. Many press commentators believed that this was due to influence from Lebanese politicians and rivals who were unhappy at the influence and power of Palestinian-born Beidas.
The collapse of Intra Bank brought a swathe of new banking regulations for the Lebanese banking sector, although these were not enough to restore faith in the Lebanese banking sector to its pre-Intra levels.
The circumstances which surrounded Intra's fall remain to this day controversial issues. The surprisingly weak support from the Lebanese government and the very public allegations over Charles Helou
Charles Helou
Charles Helou was President of Lebanon from 1964 to 1970.Born in Beirut, Helou was the scion of a powerful Maronite family from Baabda. He graduated with honours from St. Joseph's University in Beirut in 1929, and went on to complete a Law degree in 1934...
's role in the affair have been attributed to such issues as Beidas' Palestinian origin and envy over Beidas' almost complete control of the Lebanese economy.
Intra Investment Company
The collapse was followed by its restructuring, with the Central Bank and the Lebanese government taking major shareholdings. The successor company, officially Intra Investment Company but often still referred to as "Intra," remained a major shareholder in key institutions such as Middle East Airlines, Casino du Liban and Bank Al Mashrek, the remaining banking operations.By 1985, the Central Bank held 28% of Intra, the Kuwaiti government held 19%, the Lebanese held 10%, the National Bank of Kuwait held 4% and the government of Qatar 3%. Today, the Lebanese government's stake is expected to be privatised in due courser(http://www.samba.com.sa/investment/economywatch/pdf/LebEng.pdf).