Between the IMF and Depositors’ Rights... Finance Committee Draws Up a Roadmap for Banking Sector Reform

The Finance and Budget Committee in Parliament took a new step on the path toward restructuring the banking sector after approving the bank reform law during a session chaired by MP Ibrahim Kanaan, in the presence of Finance Minister Yassine Jaber, Justice Minister Adel Nassar, and Banque du Liban Governor Karim Saeed.

Following the session, Kanaan said the committee had introduced amendments to a number of the law’s articles, most notably Article 3, in line with the provisions of the Code of Money and Credit, particularly Article 70, stressing that the aim is to reach a formula consistent with international standards without undermining Lebanese laws or the national interest.

He explained that the amendments were intended to prevent any overlap or obstruction in powers, noting that the Higher Banking Commission would remain the principal body in the bank reform file, without turning into a central council or an authority for issuing circulars.

On the issue of deposits, Kanaan affirmed that the deposit recovery law remains before Parliament and is undergoing an amendment process led by the government through the designated committee, stressing the need to reach a serious solution based on securing the necessary funding, following an audit of state and bank assets, in a way that guarantees depositors’ rights.