The Central Bank of Sri Lanka on Thursday increased the minimum capital requirements for new and existing banks saying it was to ensure “a stronger and dynamic banking sector”. Banks have to reach these levels by end 2020, three years from now.
Accordingly, the minimum capital requirement for new licensed commercial banks (LCBs) is Rs. 20 billion while the requirements for licensed specialised banks (LSBs) is Rs.7.5 billion. In the case of foreign banks its Rs. 10 billion by end 2020.
In terms of existing LCBs and LSBs, the same minimum levels apply while it is Rs. 5 billion for a foreign bank with assets below Rs. 100 billion and double that (Rs. 10 billion) for foreign banks with assets above Rs. 100 billion.
"Enhancing minimum capital requirement will support the implementation of Basel III framework in Sri Lanka to strengthen the resilience of banks, and may lead to consolidation in the banking sector," the banking regulator said in a media release.
You can share this post!
Content
Kasun, was born in 28th Sept 1964, the grandson of the legendary author and linguist Munidasa Cumaratunga and son of SSP Bindu Kumaratunga and Winifred
The Inland Revenue Department (IRD) backed by the Excise and Customs Department today launched a fresh drive to collect taxes including some Rs.780 billion listed as ‘collectable defaults’.
The Supreme Court today unanimously dismissed a Fundamental Rights petition filed by five convicts in the 1996 Krishanthi Kumaraswamy abduction, rape, and murder case.
A SriLankan airlines flight has been grounded in an airport in Indonesia due to a technical defect leaving 93 passengers stranded, an official said.
Leave Comments