Appointment of a new Banking Control Commission. To provide stability and sustainability in the banking sector - Lebanon

Appointment of a new
Banking Control Commission
To provide stability and
sustainability in the banking sector
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The government appointed today a new five-member Banking Control Commission.

“The new Commission consists of Samir Hammoud as president Ahmad Safa, Joseph Sarkis, Munir Alyan and Sami Azar as members,” said Information Minister, Ramzi Greige.

The appointment of this commission comes after the expiration of the mandate of the former commission, which was formed five years ago on the 11th of March, 2010.

Governor of the Central Bank (BDL) Riad Salameh earlier said that “finalizing the designations of the Banking Control Commission is important for the stability of lending.”

Any vacancy at the Banking Control Commission, due to the non-appointment of a new Commission or non-renewal of a mandate for its former president and members, would have led to the transfer of the Commission’s power to the Governor of the BDL.

The Association of Banks in Lebanon (ABL) said earlier that it prefers the renewal of the mandate of the former Commission, headed by Ousama Mekdashi, and members Sami Azar, Ahmad Safa, Amine Awad and Munir Alyan, since the law states that they have to take an oath before the President of the Republic, a position which has been vacant for about ten months.

“A Banking Control Commission is essential to maintain Lebanon’s reputation and the sustainability of the banking sector,” said ABL’s Chairman François Bassil.

The Banking Control Commission was established in 1967 by law no. 28/67, as an administratively independent body to replace the banking control department of the BDL.

The commission is composed of five members who are appointed by the Council of Ministers for a five-year term. The law stipulates that the members should include: a specialist in banking, finance, or university academic as chairman; a member nominated by the ABL; a member nominated by the National Deposit Guarantee Institution (NDGI) and two members with appropriate professional backgrounds.
Reported by Leila Rahbani
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Date Posted: Mar 12, 2015