Business Times

CB reaffirms Sri Lanka's strong financial stability

Sri Lanka continues to maintain a strong financial stability and a positive economic growth, despite the global economic meltdown, due to an efficient and resilient banking system in the island, according to P.D.J. Fernando, Deputy Governor Central Bank,

Speaking at the inauguration of the 4th International Training Programme on Banking Supervision and Regulations at the Centre for Banking Studies, in Rajagiriya this week, Mr. Fernando said that banks can create vulnerabilities of systematic nature, partly due to a mismatch in maturity of assets and liabilities.
In these circumstances, the soundness of banks is vital, as it contributes towards maintaining confidence in the financial system and any failure may have the potential to impact on activities of all financial and non financial entities he added.

Citing an example he disclosed that the timely intervention of the government and the Central Bank had prevented a possible collapse of a private bank (Seylan Bank) due to the down fall of its parent company owing to financial mismanagement in the recent past and this bank came through the difficulty in an extra ordinary manner, and it has prevented the run on deposits in other local banks, as well, he said.
The programme is part of a series organized by the Centre for Banking Studies of the Central Bank for 20 officers of the Bangladesh Bank.

Mr Fernando said banks play a central role within the financial system, as they have the capacity to provide liquidity to the entire economy. Banks are also responsible for providing payment services and facilitating economic agents to carry out their financial transactions.

Therefore he said that further learning on the regulatory and supervisory aspects of banks based on the internationally accepted standards and sharing cross country experience in banking supervision is of paramount importance.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Over a million senior citizens eligible for 20 % bonus interest
Lankan stocks should be more pricey
Government dollar bonds a gamble
Treasury Secretary at Hanoi summit
Softlogic raises Rs 1 bln through private placement
Holcim not averse to listing
KKS plant draws 32 firms
Power from the winds
Feature - Fashionably late? Is being punctual out of sync with today’s society?
Feature - Risk Management in Modern Banking – Defending the cash line
Feature - Strategic business diversification
Comment - Diversifying a business
Young bankers lack basic skills - top industry official
Environment to play “major” role in future industries - BOI
Dankotuwa products get good play at Frankfurt fair but GSP + an issue
Nenasa TV expands coverage to 350 schools
CB reaffirms Sri Lanka's strong financial stability
Aitken Spence Hotels to raise Rs 2.5 bln from rights issue
Knowledge worker discussion at Sunday Times Business Club
SL CEO's focus is on getting more from same costs
SL must work harder to attract Japanese - Ambassador
Softlogic wins gold for corporate accountability
Northern Governor helps to revive private sector in Kilinochchi
Leisure sector to witness surge
Foreign investment interest rises in upbeat tourism
Private sector must push parliament to approve urban developments – Minister
Global companies fail to capitalise on talented women
Toyota controversy: Wake-up call on corporate criminal liability
Better profits from Aitken Spence local, Maldivian resorts -Fitch
SLASSCOM plans IT business incubator by end 2010
Plastics have real value though perceived as environmental hazard
Chilaw Finance Ltd celebrates 30th anniversary
Harnessing wind energy from Sri Lanka’s west coast
Amana wins top global award for Islamic Finance in Sri Lanka
Qatar Airways at ITB Berlin 2010
Domestic shoe makers urge government to cut taxes on components
Fitch affirms Seylan Bank at 'BBB+(lka)'; outlook stable
Lankaclear to provide Central Bank cash management services in Anuradhapura
Wegapitiya is new COYLE chairman
No strategic plan for tourism
Marketing tourism as a brand
Pitch it like what tea and cricket are to Sri Lanka
Tourism: President needs to get involved
Sri Lanka chosen by Emirates for exclusive UK tours catalogue
Not on the right track
Make it happen, not expect it to happen
Why not more agro based resorts?
Proper guidelines needed
Improve facilities on sites
Need to do things differently

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution