Lebanon central bank seeking formal banking controls

Lebanon's under-fire central bank chief is requesting special prerogatives to legitimise and regulate controversial controls imposed by banks on transactions in the crisis-hit country, two banking sources said Sunday.

If granted such powers, Riad Salameh would be able to provide official cover to banks who have been restricting dollar transactions since September without state authorisation.

His request to the finance ministry was made in a memo, which was shared by local media and confirmed by two banking sources.

The document requests authorities take legal measures to grant the central bank "exceptional powers" to impose "temporary measures" restricting cash withdrawals, transfers abroad, and other banking transactions.

Such a move, according to the memo, would help "regulate these measures and standardise them between banks so that they are implemented in a fair and equal way."