Aug 01, Colombo: The Monetary Board of Sri Lanka's Central Bank has approved 19 proposals for consolidation of island's financial institutions.
Updating the progress on the financial sector consolidation during the month of July, the Central Bank said today in a statement that the consolidation process has made significant process during the month.
Banks and non-banking financial institutions (NBFIs) such as finance and leasing companies have submitted proposed consolidation/merger/acquisition plans and those were reviewed and evaluated by the Central Bank, the Bank said.
The proposed plans included acquisitions with timelines and price indications, mergers between NBFIs, envisaged infusions of capital by present shareholders, and infusions of capital by new investors.
The Central Bank said in the case of banks and NBFIs where mergers were agreed, discussions also covered the timelines for completion of the transactions and the way forward in the post integration period.
According to the Central Bank, 57 NBFIs and 12 banks have submitted plans for mergers/acquisitions and infusion of capital.
Panel of audit firms has completed Information Memoranda, Due Diligence Reports and Valuation Reports of 38 NBFIs and the Central Bank has shared the reports with 40 prospective consolidation partners after entering into Non-Disclosure Agreements.
The Central Bank has provided a price guidance for the proposed acquisitions/mergers on the basis of valuations carried out by the audit firms.
Further, 19 NBFIs have completed the internal processes in order to submit their proposals for the approval of the Central Bank.
Mergers of DFCC Bank, DFCC Vardhana Bank PLC and the National Development Bank PLC, as well as Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Ltd., and MCSL Financial Services Ltd., continued to progress during the month.
Consolidations of the Commercial Bank of Ceylon PLC with Indra Finance Ltd., and Deshodaya Development Finance Company Ltd. with George Steuart Finance PLC have been announced publicly.
The Central Bank said the International Monetary Fund in its recently concluded Article IV Mission Report has expressed positive sentiment regarding the ongoing financial sector consolidation, highlighting that the programme offers a potential opportunity to increase the resilience of the system and contribute to more effective oversight.
http://www.colombopage.com/
Updating the progress on the financial sector consolidation during the month of July, the Central Bank said today in a statement that the consolidation process has made significant process during the month.
Banks and non-banking financial institutions (NBFIs) such as finance and leasing companies have submitted proposed consolidation/merger/acquisition plans and those were reviewed and evaluated by the Central Bank, the Bank said.
The proposed plans included acquisitions with timelines and price indications, mergers between NBFIs, envisaged infusions of capital by present shareholders, and infusions of capital by new investors.
The Central Bank said in the case of banks and NBFIs where mergers were agreed, discussions also covered the timelines for completion of the transactions and the way forward in the post integration period.
According to the Central Bank, 57 NBFIs and 12 banks have submitted plans for mergers/acquisitions and infusion of capital.
Panel of audit firms has completed Information Memoranda, Due Diligence Reports and Valuation Reports of 38 NBFIs and the Central Bank has shared the reports with 40 prospective consolidation partners after entering into Non-Disclosure Agreements.
The Central Bank has provided a price guidance for the proposed acquisitions/mergers on the basis of valuations carried out by the audit firms.
Further, 19 NBFIs have completed the internal processes in order to submit their proposals for the approval of the Central Bank.
Mergers of DFCC Bank, DFCC Vardhana Bank PLC and the National Development Bank PLC, as well as Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Ltd., and MCSL Financial Services Ltd., continued to progress during the month.
Consolidations of the Commercial Bank of Ceylon PLC with Indra Finance Ltd., and Deshodaya Development Finance Company Ltd. with George Steuart Finance PLC have been announced publicly.
The Central Bank said the International Monetary Fund in its recently concluded Article IV Mission Report has expressed positive sentiment regarding the ongoing financial sector consolidation, highlighting that the programme offers a potential opportunity to increase the resilience of the system and contribute to more effective oversight.
http://www.colombopage.com/
