CBSL asks banks to submit their preliminary proposals on Consolidation Plan

CBSL asks banks to submit their preliminary proposals on Consolidation Plan

Written by Bella Dalima

01 Feb, 2014 | 10:57 pm

 The Central Bank of Sri Lanka notes that banks and non-banking financial institutions are required to submit their preliminary proposals on the Consolidation Plan by March 31, 2014.

Assistant Governor of the Central Banks of Sri Lanka, C.J.G. Siriwardena says that the consolidation process will not, in any way, affect the general public’s current transactions and deposits with the banks and finance companies, with whom they are presently transacting.

A master plan on the consolidation of the financial sector to create a stable financial sector with strong and dynamic financial institutions in order to steer Sri Lanka towards the economic goals set for 2016 and beyond, were proposed in the recent budget.

Accordingly, the Central of Sri Lanka set out a road made for 2014 and beyond and has already commenced its preliminary process.

Thereby, banks and non-banking financial institutions will be consolidated in different ways.

Banks and non-banking financial institutions that will be consolidated will be decided by the Central Bank of Sri Lanka and the proposed plans need to be forwarded to the CBSL for approval.

In addition, the Central Bank requested all banks, NBFIs and others who are involved in the process to continue a close dialogue with the Central Bank and obtain guidance if the need arises.

In this regard, the members of the special unit headed by the Assistant Governor were introduced to the banks and NBFIs to ease the process.

Assistant Governor of the Central Bank of Sri Lanka C.J.G.Siriwardena said that currently 58 banks and twenty one banking financial institutions are registered with the Central Bank. Siriwardena added that certain institutions have a stable monetary foundation while others are not in a position to face a financial crisis. He added that the consolidation effort will ensure the creation of a strong and sound monetary system.

The Central Banks of Sri Lanka added that steps will be taken against those institutions that do not cooperate with the effort.

 

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