Banking Sector Seeks Protections as Finance Ministry Negotiates Reform Measures

Finance Minister Yassin Jaber has convened a series of significant discussions at the Ministry of Finance, beginning with a meeting between senior banking officials and government leadership.

Salim Sfeir led a delegation from the Association of Banks in talks with Minister Jaber, focusing on recent developments in reform legislation. The Financial Regulatory and Deposit Recovery Law came under particular scrutiny, with discussion centered on amendments to the legislation and ongoing negotiations with the International Monetary Fund to establish mutually acceptable terms.

The banking delegation pressed for legal provisions that would shield banks' private capital and protect against what they characterized as arbitrary action, citing concerns that financial institutions could become collateral damage in the broader banking crisis. Minister Jaber countered by reaffirming that all discussions—whether domestic or international—must prioritize national interest, public financial stability, the Bank of Lebanon, and the banking system itself. He underscored, however, that depositor protections represent the foundation upon which any resolution must be built.

The minister's agenda extended beyond banking matters. He convened separate meetings with Agriculture Minister Nizar Hani and Director General Louis Lahoud to assess damage sustained by the agricultural sector and its cascading effects on domestic production and economic conditions. The discussion included exploration of mechanisms to provide relief and support to farming communities.

Jaber also met with Imran Riza, the United Nations Resident Coordinator and Humanitarian Coordinator, to explore international assistance available for those displaced by Israeli military operations. The conversation addressed programmed support initiatives aligned with the "Lebanon Recovery Plan" framework established in 2024.

The minister concluded his series of meetings with former Minister Ghazi Al-Aridi to review the broader national situation.