Saving the economy or saving face?

An alternative to ineffective banking reforms and recovery plans The latest version of the bank resolution law has the same pitfalls as the previous ones. Mainly, the law proposed the creation of a committee entitled to determine which banks to be resolved and which to be restructured. The committee is composed of the central bank’s governor and vice governors as the main decision makers, which implies that Banque du Liban (BDL), the debtor, is determining the destiny of banks, the creditors. It is an absurd situation.  The decision-making process should be in the hands of an independent committee.  It has other pitfalls such as the discretionary classification of deposits into qualified and nonqualified deposits. The proposed reforms would also require depositors to provide evidence of how they earned all deposits exceeding $500 thousand dollars and confirmation from the ministry of finance of the respective country where the deposits originated. This