On March 14, a judge froze the assets of five top banks and members of their boards while she investigated loans received from the central bank. Simultaneously, civil courts in the UK issued a ruling which ordered two Lebanese banks to pay their clients in dollars; also, Lebanese civil courts froze one bank’s assets following legal action taken by depositors in response to banks implementing unsanctioned restrictions on cash withdrawals and international transfers. Lebanon’s banks’ association accused the judge of destabilizing the country’s banking system, already crippled by a financial meltdown. It went on strike on March 21 and 22nd asking the government to provide solutions. The cabinet proposed a capital control law that would legalize the current practices of banks.

LIMS focused on the civil court rulings about the illegal restrictions imposed by the banks on depositors and viewed the capital control law as a shield in favor of banks to protect them from depositors’ lawsuits. However, this law does not protect depositors as it strips them of their right to withdraw their deposits without any protection in return. Therefore, LIMS argued that capital controls should be accompanied by creating a currency board. A currency board would stabilize the exchange rate preventing further loss of purchasing power and setting the base for the reconstitution of foreign exchange reserves. LIMS suggested that the government strike a deal with the banks in which banks accept establishing a currency board, thus protecting depositors’ remaining foreign exchange reserves. In return, a capital control law will be issued to protect the banks from lawsuits.

• War Started Between Banks And The Judicial System: This Is What’s Next, March 16, 2022: Jusur, Article AR 
• Will Lebanese Pay The Price Of Conflict Between The Judicial System And Banks? March 18, 2022: Sawt Beirut International, Article AR
• Lebanese Banks At Standoff With The Judicial System, March 19, 2022: Roayah News Article AR
• What Do Banks Want From The Strike? March 20, 2022: OTV, TV Interview AR
• This Is What Banks Are Demanding, March 22, 2022: Leb Economy, Article AR
• Proposal For Capital Control Law Suddenly Appears, March 28, 2022: Annahar, Article AR
• New “Capital Control”: Seizing What’s Left Of Depositor’s Dollars, March 29, 2022: Al Joumhouria, Article AR
• Dr. Mardini: Capital Control Law Squanders Depositors Funds, Instead Of Protecting Them, March 29, 2022: Al Jadeed, TV Interview AR 
• Are Banks Going Bankrupt? The Student Dollar Is Unfair, March 29, 2022: Sawt Beirut International, TV Interview AR  
• Capital Control Deemed Necessary, Under Pretext Of Safeguarding Depositors Funds, March 30, 2022: Sawt Beirut International, Article AR
• Does The Capital Control Bill Propose To Parliament Protect Depositors Or Banks? March 31, 2022: Al Jadeed, TV Interview AR