Kan'an: Banking Reform Law Approved According to Finance Committee Amendments, Except for Two Provisions, with Deposit Protection Emphasized

Nabih Kan'an announced after the legislative session that the banking reform law was approved according to amendments by the Finance and Budget Committee, except for one article and a clause from another, noting that this law is linked to the phase following the implementation of the financial regularization law and the recovery of deposits.

He said: "As submitted by the government, in coordination with the International Monetary Fund, the current crisis was excluded from many provisions and conditions and incorporated into the financial regularization law."

He added: "We have now, for the second time, passed the banking reform law, and I hope it will be the last time, because the essence of resolving Lebanon's banking, financial, and monetary crisis lies in the financial regularization law. Recovering deposits is what will restore confidence in the Lebanese economy and banking system. International confidence is required from the IMF and international institutions, but it is insufficient if depositors and investors do not feel their rights are protected and that they are being treated seriously, as this sector needs investor and depositor confidence to revive the economy more than it needs access to external borrowing."

Kan'an emphasized that "the government is obligated to conclude the review of the financial regularization law at the earliest opportunity," stating: "We will take a position in September, and we will not accept further delays on the deposit file. For the first time in six years, the government’s draft includes a mechanism for deposit recovery, a key demand of the Finance and Budget Committee since 2020 and essential to safeguarding depositors' rights."

He added: "We will build on the positive aspects and must cooperate with the government, as the data in its possession, along with the audit of state and bank assets inside and outside Lebanon, falls under its responsibility, not that of the Parliament."

Kan'an continued: "I did not participate in voting on the amnesty law because there is a precedent that should not be institutionalized—the exclusion of the Minister of Defense, responsible for the military institution, from expressing an opinion. This precedent should never have occurred. We are not against amnesty, but its passage should have been accompanied by hearing the military institution’s viewpoint."

He concluded: "More than ever, we need to set politics aside, treat each other with respect, and protect our institutions."