Lebanon ranks 2^nd in MENA on Financial Development Index.  

          A working paper released by the International Monetary Fund shows that Lebanon ranked in 2^nd place on the Comprehensive Financial Development Index (CFDI) for 20 countries in the Middle East and North Africa region. The CFDI, which covered the 2002- 2003 period, is a composite of six sub indices that covered 35 different indicators.

          The sub-indices are development of the monetary sector and monetary policy, banking sector development, non-bank financial sector development, regulation and supervision, financial openness, and institutional quality such as the strength of property rights.

          The countries covered by the survey are Afghanistan, Algeria, Bahrain, Djibouti, Egypt, Iran, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia,  United Arab Emirates, the West Bank and Gaza, and Yemen. Lebanon received a score of 7 points on CFDI, higher than the MENA average of 5 points and coming only behind Bahrain, which received 7.7 points.

          The individual sub-indices show that Lebanon ranked in first place in the MENA region on Banking Sector Development with 8.7 points compared to a regional average of 5.5 points, and came in first place on Monetary Sector and Policy Development with 8.3 points compared to a regional average of 5.9 points. Further, Lebanon came in 6^th place on each of the Regulation and Supervision as well as the Institutional Environment sub-indices with scores of 7.7 points and 5.2 points, respectively, compared to MENA averages of 5.7 points and 4.2 points, respectively.

          Finally, The survey found that the degree of financial development varies across the region, with countries such as Lebanon, Jordan and GCC countries having relatively well-developed and profitable banking sectors and others such as Lebanon, Jordan Morocco, Tunisia and GCC countries having strong and up-to-date regulatory and supervisory regimes.