Lebanon

Restructuring Banks... Will It Prevent Storming?

Restructuring Banks... Will It Prevent Storming?

The Association of Banks in Lebanon is expected to issue a statement tomorrow regarding the resumption of work or its extension in light of the reassurances given to them by the Minister of Interior in the Caretaker Government, Bassam Mawlawi, and the security agencies, as well as the effectiveness of the measures taken by these agencies to prevent bank stormings like the one that occurred last Friday, which led to the closure of banks for three days.

Additionally, the Union of Bank Employees will hold a meeting today to discuss the seriousness of the measures protecting its staff, and it is expected that both meetings will align on whether to continue or suspend the strike.

Banking sources told "Al-Markazia" that banks have implemented measures to ensure the safety of their employees, such as increasing security at their branches, inspecting depositors, limiting access to a certain number of depositors, or requiring prior appointments for entry to these branches. However, they express astonishment at "this attack and these stormings on the banks at a time when the state bears responsibility for the circumstances that led to the situation in the banks and the losses incurred due to its failure to settle due financial obligations. Even the plans announced by the governments of Hassan Diab and Najib Mikati placed the responsibility on the banks and absolved the state of any related responsibility."

The sources believe that "there is a need today to expedite the approval of the bill for the restructuring of the banking sector and to determine who will bear the losses, otherwise these problems in the banking sector will continue, especially since Banque du Liban is the one drafting this law. Thus, the Governor of Banque du Liban, Riad Salameh, will need to consider the 20% increase in bank capital that was requested some time ago and which the banks adhered to."

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