CB lessons on lending for pawn brokers
View(s):With gold prices crashing and causing many financial problems to pawn brokers, the Central Bank (CB) is taking the bull by the horns and conducting a course on ‘lending against pawn brokering’.
For Rs. 10,000, the 2-day course at the CB’s Centre for Banking Studies at Rajagiriya will provide lessons to participants on ‘how to understand the procedures to be followed in pawning of jewellery; examine the value of the jewellery items and assess loan amounts’.
The course will also discuss the legal aspects of pawning, determination of gold content and loan amounts, techniques in examining gold with special emphasis to identify fakes, recovery procedures before auction and auctioning procedures for pawned items. The pawning divisions of dozens of banks and pawn brokers have suffered losses after gold prices fell leaving them with an asset that is less that the loans given to the owner of the jewellery.
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