Report: State Political Crises to Impact Lebanon's Banking Control Commission

by Naharnet Newsdesk 27 February 2015, 08:29

Observers expressed fear on Friday that the cabinet might fail to appoint the members of the Banking Control Commission of Lebanon (BCCL) before the end of the current representatives' term on March 11.

The paralysis at the government, which is not convening, could highly impact the banking sector if the members of the committee, 5, were not replaced or their tenure extended, al-Liwaa newspaper reported.

A source from the banking sector told the daily that the political crises could have a heavy impact on the committee as the members should take their oath before the president, who is currently absent.

According to the Lebanese Monetary and Credit Code, the committee suspends its work after the term of its members end and they become merely caretaking officials.

The daily said that al-Mustaqbal Movement proposed the appointment of Samir Hammoud instead of the current committee's chairman Usama Mikdashi, who refused to renew his term.

AMAL and Hizbullah also requested to renew the term of the Shiite member in the committee Ahmed Safa, who is an executive director.

Meanwhile, Free Patriotic Movement leader MP Michel Aoun is holding onto his right to name the Maronite member, while the Association of Banks nominated Amine Awad for the post, who is currently an executive director at the committee and a member of the higher banking council.

The appointment of Orthodox members, Sami el-Azar (executive director), Mounir Lyan (executive director) isn't facing any obstacles.

The current members were appointed in 2010.

The committee was established in 1967 as an administratively independent body to replace the banking control department of the Central Bank. The commission is comprised of five members who are appointed by the council of ministers for a five-year term.

H.K.

G.K.

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