One of the secondary entrances to the Banque du Liban, located in Beirut's Hamra district. (Credit: P.H.B./L'Orient-Le Jour)
Seventy-three days after it was submitted to Parliament, the draft law on the reform and reorganization of the banking sector remains stalled. Although the bill is presented as a critical tool for jump-starting the overhaul of a collapsed financial system, meetings of the subcommittee formed by the Finance and Budget Committee have yielded no meaningful progress.The deadlock centers on Article 5 of the draft, which outlines the composition of the future High Banking Authority, tasked with overseeing the restructuring of distressed institutions, whether through recapitalization, merger or liquidation. The provision has become the focal point of a quiet but persistent standoff between the government and Banque du Liban (BDL, central bank).A decisive session scheduled for Tuesday, June 24, was canceled due to a lack of consensus.“The...
Seventy-three days after it was submitted to Parliament, the draft law on the reform and reorganization of the banking sector remains stalled. Although the bill is presented as a critical tool for jump-starting the overhaul of a collapsed financial system, meetings of the subcommittee formed by the Finance and Budget Committee have yielded no meaningful progress.The deadlock centers on Article 5 of the draft, which outlines the composition of the future High Banking Authority, tasked with overseeing the restructuring of distressed institutions, whether through recapitalization, merger or liquidation. The provision has become the focal point of a quiet but persistent standoff between the government and Banque du Liban (BDL, central bank).A decisive session scheduled for Tuesday, June 24, was canceled due to a lack of consensus.“The...
