Finance and budget committee approves banking reform law

The finance and budget committee approved Monday the banking reform law, MP Ibrahim Kanaan, head of the committee, said after a 6-hour meeting.

Kanaan assured Lebanese depositors that their money will not be touched. "Everyone knows how the money was squandered and how it was distributed between the government, the Central Bank, and the banks," he said, adding that depositors will be protected.

International donors have been pressuring Lebanon to implement several financial reforms to address its severe economic crisis, as a pre-requisite for unlocking billions of dollars to help Lebanon recover from a crippling financial crisis that began in 2019, fueled by state mismanagement and entrenched corruption.

In 2019, Lebanon's financial system collapsed and the Lebanese pound lost over 90% of its value against the U.S. dollar. Banks imposed strict limits on withdrawals, leaving depositors unable to access their savings.