Lebanese central bank forms committee to restructure commercial banking sector

Lebanon's central bank formed on Thursday a special committee to restructure the commercial banking sector in the country, the National News Agency reported.

The committee will study the restructuring of the banking sector, propose necessary amendments to regulations pertaining to banks' operation and study the financial performance of the Lebanese banks while proposing the necessary steps to protect this sector.

Confidence in the Lebanese banking sector was lost in the past few months due to the shortage in U.S. dollar which prompted banks to impose unofficial capital control on deposits while restricting withdrawals on both U.S. and Lebanese currencies.

Local experts have on many occasions suggested to merge banks in addition to unlocking depositors' money to restore trust in the banking sector.