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What is Parliament role in solving banking sector crisis?
Lebanon Economy
21-01-2023 | 09:00
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What is Parliament role in solving banking sector crisis?
According to banking sources, the Parliament plays a significant part in determining what happens to bank deposits through any laws it may pass about the recovery plan and other connected issues like capital control and others.
These sources made the point that since the Parliament must give final approval to any proposal or draft law, it has the authority to accept, reject, or amend it.
As a result, the Parliament cannot justifiably pass any legislation harmful to depositors, the financial sector, or the economy in general.
According to banking sources, the Parliament's involvement cannot be confined to adding provisions that discuss refusing to write off deposits; instead, it must decide how it will preserve these deposits through the laws it publishes so that the issue is not merely a matter of wishes that don't match reality.
According to banking sources, the proposal for the bill to restore the financial system balance is expected to be released in a completely different form than the one in which Parliament received it.
This will logically result in the loss of deposits and maybe the financial sector as a whole.
The job of the specialized parliamentary committees is to demonstrate to the Lebanese that the promises made by the lawmakers would be reflected in the laws enacted, particularly in terms of dealing with losses in a just and rational way that results in real salvation.
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