By Mario Andree
Ceylon FT: A senior official said, that the country's financial sector regulator, the Central Bank had decided to play the role of marriage broker for banks and non-bank financial institutions which fail to identify their partner for merger or acquisition.
The regulator, decided to reduce the number of banks and non-bank financial institutions after several recorded failures. According to the Central Bank master plan, the number of non-bank financial institutions would be reduced to 20 out of which three will specialize in micro finance, while five major banks would be created to hold more than Rs 1 trillion assets, with one bank as a major development bank and smaller banks which would hold more than Rs 100 billion in assets.
Central Bank categorized the 58 non-banking financial institutions (NBFIs) into three categories A, B and C in preparation for the consolidation; and 19 NBFIs fitted into category 'A' which was compliant with regulations, with a capital of more than Rs 1 billion and assets worth more than Rs 8 billion. The Central Bank Governor outlining the Master Plan on Consolidation of the Financial Sector said that 38 NBFIs were categorized as 'B' because they fell short of the requirements for category A, and one firm that was under court restraint, fell into category 'C'.
www.ceylontoday.lk
Ceylon FT: A senior official said, that the country's financial sector regulator, the Central Bank had decided to play the role of marriage broker for banks and non-bank financial institutions which fail to identify their partner for merger or acquisition.
Assistant Governor of Central Bank C. J. P Siriwardana said that adequate time was given for banks and non-bank financial institutions to identify partners for mergers and acquisitions, and if any institution fails to submit proposals by the deadline, the Central Bank would identify marriage proposals for them.
Addressing queries at a forum organized by the Institute of Chartered Accountants on Wednesday (19), Siriwardena said that the regulator...decided to reduce the number of banks and non-bank financial institutions through mergers.
According to him, banks and non-bank financial institutes have shown keen interest in consolidation efforts giving rise to several issues arising in the process.
According to him, banks and non-bank financial institutes have shown keen interest in consolidation efforts giving rise to several issues arising in the process.
The regulator, decided to reduce the number of banks and non-bank financial institutions after several recorded failures. According to the Central Bank master plan, the number of non-bank financial institutions would be reduced to 20 out of which three will specialize in micro finance, while five major banks would be created to hold more than Rs 1 trillion assets, with one bank as a major development bank and smaller banks which would hold more than Rs 100 billion in assets.
Central Bank categorized the 58 non-banking financial institutions (NBFIs) into three categories A, B and C in preparation for the consolidation; and 19 NBFIs fitted into category 'A' which was compliant with regulations, with a capital of more than Rs 1 billion and assets worth more than Rs 8 billion. The Central Bank Governor outlining the Master Plan on Consolidation of the Financial Sector said that 38 NBFIs were categorized as 'B' because they fell short of the requirements for category A, and one firm that was under court restraint, fell into category 'C'.
www.ceylontoday.lk
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