Lebanon’s Central Bank, Banque Du Liban (BDL), is on a mission to study and restructure the ailing banking sector in Lebanon.
It just formed a 10-member committee called the “Restructuring Banking Sector Committee” that will assess the banks’ financial performance and propose ways to protect the sector, it stated in a memo.
According to The Daily Star, this committee will “study the proposals number 12713 dated Nov. 17, 2017, and proposal number 6939 dated March 25, 1998.”
BDL’s Second Vice Governor Bashir Yakzan will be heading the committee. Other members of the panel include the head of BDL’s legal department, the head of the compliance department, 4 representatives of the Banking Control Commission, and 3 representatives of the Association of Banks in Lebanon (ABL).
Members will report back to BDL Governor Riad Salameh.
Locked out of their dollar savings, Lebanese people are losing trust in the sector, which was once the pride of Lebanon. During riots, there have been multiple attacks on banks across the country.
In addition, the term ‘Lollars’ (which is on the Urban Dictionary) was coined to refer to U.S. dollars stuck in the Lebanese banking system.
Lebanese currency has lost around 80% of its value since October 2019. Unemployment is on the rise and hunger is turning good people into thieves. Painfully so, hunger crimes are on the rise.
Meanwhile, BDL and the government are in a non-ending dispute regarding the true losses presented to the International Monetary Fund.
The dispute is stalling the IMF negotiations, pushing the recuse plan further into the distance.