Lebanon's central bank to take over banks that cannot boost capital

The central bank is giving Lebanese banks until February to increase their capital by 20% or give their shares to the government amid fears that people's deposits are at risk.
Lebanese Army soldiers roll away a flaming tire from the fence surrounding the local branch of the Banque du Liban (Lebanese Central Bank) as protesters gather to demonstrate against dire economic conditions in the northern city of Tripoli on June 11, 2020. - The Lebanese pound sank to a record low on the black market on June 11 despite the authorities' attempts to halt the plunge of the crisis-hit country's currency, money changers said. Lebanon is in the grips of its worst economic turmoil in decades, and
Lebanese army soldiers roll away a flaming tire from the fence surrounding the local branch of the Lebanon's central bank as protesters gather to demonstrate against dire economic conditions in the northern city of Tripoli on June 11, 2020. - FATHI AL-MASRI/AFP via Getty Images
Al Monitor: The Pulse of the Middle East
Al-Monitor Staff

Lebanon’s central bank is demanding other banks in the country increase their capital or face a takeover from the government. The order is an attempt by central bank authorities to up the amount of cash in the country’s banks amid fears that people’s savings are at risk.

The central bank's governor, Riad Salameh, said the banks have until February 2021 to raise their capital by 20%, Reuters reported Thursday. The bank issued a series of new regulations Thursday amid the ongoing crisis in the country.

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