Secretary General of the Association of Banks in Lebanon (ABL) Fadi Khalaf said, in the preamble of the association's monthly report titled “The return of loans will contribute to the recovery of deposits,” that restoring the banking sector's normal role, particularly in the field of credit, is essential to getting the Lebanese economy moving again, as well as to recovering deposits.
He recalled that during the Real Estate Forum held in Beirut, the interim governor of the Central Bank of Lebanon (BDL), Wassim Mansouri, stressed the need to get the credit process back on track.
Khalaf explained that this measure would strengthen economic activity and increase liquidity in banks, which would automatically contribute to efforts to return depositors' money. This requirement is essential for all parties and should be welcomed because it is in everyone's interest.
This step requires Parliament to cooperate with Mansouri, by approving a law guaranteeing repayment of the loans in the borrowed currency, especially since the funds proposed for the loans are fresh dollar deposits.
Deposits in fresh dollars are 100% protected by BDL circulars. However, it is crucial to direct them toward productive uses that benefit everyone. The banks, for their part, confirm that they will not take any steps towards granting credit unless they have a sufficient legal basis to protect them.
Khalaf pointed out that restoring the banking sector's role as a lender is essential to rebuilding confidence and achieving economic prosperity. He believes that this will strengthen and expedite banks' ability to return depositors' money, stimulate economic growth and restore confidence in the banking sector.
He recalled that during the Real Estate Forum held in Beirut, the interim governor of the Central Bank of Lebanon (BDL), Wassim Mansouri, stressed the need to get the credit process back on track.
Khalaf explained that this measure would strengthen economic activity and increase liquidity in banks, which would automatically contribute to efforts to return depositors' money. This requirement is essential for all parties and should be welcomed because it is in everyone's interest.
This step requires Parliament to cooperate with Mansouri, by approving a law guaranteeing repayment of the loans in the borrowed currency, especially since the funds proposed for the loans are fresh dollar deposits.
Deposits in fresh dollars are 100% protected by BDL circulars. However, it is crucial to direct them toward productive uses that benefit everyone. The banks, for their part, confirm that they will not take any steps towards granting credit unless they have a sufficient legal basis to protect them.
Khalaf pointed out that restoring the banking sector's role as a lender is essential to rebuilding confidence and achieving economic prosperity. He believes that this will strengthen and expedite banks' ability to return depositors' money, stimulate economic growth and restore confidence in the banking sector.
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