Summary
Lebanese banks are liquid but operating in a very strong "wave of uncertainty," the banking association head said, describing temporary controls introduced this week as "a fence to protect the system" until the situation normalizes. Salim Sfeir dismissed the suggestion of a haircut on bank deposits, mooted by some observers in the financial industry, as "insane," telling Reuters it would badly hurt the future stability of a country dependent on capital inflows. He said he was being told depositors were already estimated to have withdrawn $3 billion or more and put the cash at home in the last six months.
Lebanese banks have been shut for most of the time since the protests began.
The Central Bank last week said it was allowing banks to borrow dollars without limits at 20 percent interest to secure depositors' needs on condition the funds were not sent abroad.
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