Business Times

Central Bank on risk management issues for banks

The Central Bank has issued guidelines on Integrated Risk Management Framework for Licensed Banks saying banks are often exposed to various risks inherent to their business operations and they are often heavily interdependent.

The management of such risks in an integrated manner is essential to promote the soundness of the banking system, it said, adding, “at the same time, international best practices mandates that banks should have a comprehensive Integrated Risk Management (IRM) Framework to identify, control and mitigate such risks.”

The CB Issued a Direction along with Guidelines on IRM framework as a set of minimum guiding principles and standards for licensed banks to adopt. This is in addition to the risk management principles and rules required in regulatory and supervisory procedures and other market best practices of banks’ risk management, it said.

The Guidelines broadly cover the management of credit, market, operational, liquidity and interest rate risks, stress testing and disclosure requirements in an IRM Framework, based on standard market practices. The Direction has been issued to the banks after a consultative process with all stakeholders and it will be effective in six months’ time.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Govt. plans land audit
Rajaratnam saga: Proves insider trading doesn’t pay
Hemas Power eyeing African hydro power projects, bio-mass
Indian, British travel agents concern over new visa rules
Call for national minimum wage
Yummy, yummy jelly
Comment - Deepavali: Next big plantation challenge
What you should know about expressways
Creative ways of battling corruption and evil
Dialog subscribers can download SatNav app onto mobile phones
Suntel says enjoys strong balance sheet
LOLC keeps strong finger on SL economy
Lanka's first luxury Motorhome
DSI leads in Lankan footwear market-Fitch
Natural gas find could spur foreign investment: Central Bank
Central Bank on risk management issues for banks
Bates re-launches in Asia
Pure Ceylon Cinnamon unveiled at major German trade fair
‘Roadside Stations’ urged in Sri Lankan tourism boom
EFC signs pacts with Jaffna and Hambantota chambers
Yuan (Chinese currency) deals from Commercial Bank
Sri Lanka’s economy rebounds sharply, says HSBC Economic Chief
Prudential Shipping says handles biggest cargo operation at Hambantota Port
New standards for lead in paints after rights case by NGO
Mother of all recessions: Branson
Duty cuts for raw materials in confectionery products
e-Channelling has dental tourism, 2 leisure portals lined up
People's Leasing awaiting S'pore, Hong Kong funds for IPO
Tips on ‘Decision-making’ at ST Business Club
What has gone wrong at the Colombo bourse?
681 SL cyber security incidents so far in 2011
Steve Jobs’ legacy at Apple
Fitch upholds Dialog's 'AAA(lka)' / Stable
Tribute to Lalith Kotalawela in new book on Ceylinco saga
Richard Peiris eyeing warehousing, store expansions
Nation Lanka resurrects subsidiary CICL
SEC conducts ‘Investment Day’ awareness on investment
Sri Lanka business delegation visits Moscow
ComBank to promote General Insurance with Chartis

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution