The entrance to the Association of Banks of Lebanon (ABL) in Beirut. (Credit: NNA file photo)
During a meeting held on April 30 with Finance Minister Yassine Jaber, the Association of Banks in Lebanon (ABL) voiced multiple and substantial reservations regarding the banking resolution draft law, which was reviewed by the parliamentary committee the following day. The meeting highlighted the persistent gap between the banking sector’s expectations and the requirements of the drafted reform.A controversial point concerns the possibility of holding major bank shareholders personally liable in the event of liquidation, “when there are serious reasons to suspect their involvement in civil or criminal offenses.” According to bankers present at the meeting, this provision would immediately deter any foreign investment in the Lebanese banking sector. In their view, a majority shareholder should only be held liable up to the amount of...
During a meeting held on April 30 with Finance Minister Yassine Jaber, the Association of Banks in Lebanon (ABL) voiced multiple and substantial reservations regarding the banking resolution draft law, which was reviewed by the parliamentary committee the following day. The meeting highlighted the persistent gap between the banking sector’s expectations and the requirements of the drafted reform.A controversial point concerns the possibility of holding major bank shareholders personally liable in the event of liquidation, “when there are serious reasons to suspect their involvement in civil or criminal offenses.” According to bankers present at the meeting, this provision would immediately deter any foreign investment in the Lebanese banking sector. In their view, a majority shareholder should only be held liable up to the amount...