H.D.H Senewiratne hsenewiratne@gmail.com
Sri Lanka needs to have sustainable credit management practices in order to manage the total Rs 18 trillion lending within the country, Central Bank Governor Ajith Nivard Cabraal said.
“Every country needs to have a good credit management system when credit is given and recovering credit from various organisations. Therefore, people should be trained on credit management systems,Governor Cabraal told the graduation and awards ceremony of the Institute of Credit Management of Sri Lanka held recently .
He said a total of Rs 18 trillion worth of credit has been granted by banks and various lending institutes. “Therefore in the next few years not only collateral lending credit but also other financial lending methods will be adopted with the expansion of the economy,” he said.
The banks should have a credit policy which has been approved by the Board.
Credit policy is the foundation on which credit risk management of both portfolio and processes are built for the new era, he said.
A credit policy serves as the basis for consistent credit risk management throughout the bank through product, segment, geographic and organizational divisions and should apply to all employees at all levels dealing in credit risk.
The Governor also said credit policies which define appropriate behaviour in lending business should support bank’s business strategies, which lay down the requirements for employees dealing with credit risk, compliance guidelines on risk exposures, policies on collateral and areas to be avoided.
“Sri Lanka is now going through enormous transformation where the credit management sector is concerned but we have to address the gaps where education and training are concerned”, he said.
Securities lending is an investment overlay strategy that involves the temporary transfer of a security by its owner (the lender) to another investor or financial intermediary (the borrower) in a transaction that is collateralized with cash or securities. Securities lending is intended to compliment investment strategies and allow investors the ability to monetize the intrinsic lending value of idle securities.
The process of lending out these securities affords an investor the opportunity to produce alpha by generating income which can be used to increase portfolio returns or offset portfolio expenses with a manageable level of risk.
Securities lending provides critically needed liquidity in the financial markets, supports a variety of trading strategies, facilitates trade settlements and supports general financing techniques.
www.dailynews.lk
Sri Lanka needs to have sustainable credit management practices in order to manage the total Rs 18 trillion lending within the country, Central Bank Governor Ajith Nivard Cabraal said.
“Every country needs to have a good credit management system when credit is given and recovering credit from various organisations. Therefore, people should be trained on credit management systems,Governor Cabraal told the graduation and awards ceremony of the Institute of Credit Management of Sri Lanka held recently .
He said a total of Rs 18 trillion worth of credit has been granted by banks and various lending institutes. “Therefore in the next few years not only collateral lending credit but also other financial lending methods will be adopted with the expansion of the economy,” he said.
The banks should have a credit policy which has been approved by the Board.
Credit policy is the foundation on which credit risk management of both portfolio and processes are built for the new era, he said.
A credit policy serves as the basis for consistent credit risk management throughout the bank through product, segment, geographic and organizational divisions and should apply to all employees at all levels dealing in credit risk.
The Governor also said credit policies which define appropriate behaviour in lending business should support bank’s business strategies, which lay down the requirements for employees dealing with credit risk, compliance guidelines on risk exposures, policies on collateral and areas to be avoided.
“Sri Lanka is now going through enormous transformation where the credit management sector is concerned but we have to address the gaps where education and training are concerned”, he said.
Securities lending is an investment overlay strategy that involves the temporary transfer of a security by its owner (the lender) to another investor or financial intermediary (the borrower) in a transaction that is collateralized with cash or securities. Securities lending is intended to compliment investment strategies and allow investors the ability to monetize the intrinsic lending value of idle securities.
The process of lending out these securities affords an investor the opportunity to produce alpha by generating income which can be used to increase portfolio returns or offset portfolio expenses with a manageable level of risk.
Securities lending provides critically needed liquidity in the financial markets, supports a variety of trading strategies, facilitates trade settlements and supports general financing techniques.
www.dailynews.lk
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