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Key Lebanese bank pulls out of Association to protect depositors

Al-Mawared Bank announced Friday the suspension of its membership in the Association of Banks as it accused the association of failing to protect the banks and the depositors.

The Bank in a statement accused the Association of taking decisions "that are not necessarily in the interest of its members and of the depositors," since the beginning of the crisis in October 2019, and of "failing to protect the banking sector."

"The Association has been taking decisions that harmed the banking sector and the depositors, starting with the decision to close banks for two weeks during the month of October 2019, which affected the confidence of the depositors in the banks," al-Mawared said.

The Bank also accused the Association of sending a letter to the International Monetary Fund without notifying the association's members or discussing its content with them.

"It is an obligation for banks to preserve the money of the depositors who trusted the banks with it," al-Mawared said, adding that it can't "stand idly by and let the depositors bear the losses."

The Bank urged other banks to follow suit and suspend their membership.


Written by The Levant