Feb 01, Colombo: The consolidation process of Sri Lanka's banks and non-banking financial institutions (NBFIs) initiated at the beginning of this year has shown satisfactory progress, the Central Bank said.
As outlined in the Road Map 2014 and Beyond the Central Bank is trying to reduce the number of small banks and NBFIs in the country by consolidating them into larger institutions.
Central Bank conducted a seminar on 17 January 2014 to explain the need and the rationale for such consolidation.
At the seminar, the monetary authority announced the key components of the Consolidation Plan to the Chairmen and Chief Executive Officers of banks and non-bank financial institutions (NBFIs), key management of the audit firms which are eligible to audit banks and NBFIs, and representatives of the Institute of Chartered Accountants of Sri Lanka and the Institute of Personnel Management.
Subsequently, the Central Bank senior management held one-on-one meetings with almost all boards of directors and senior management of the local banks and NBFIs and further clarified the expectations of the Consolidation process and discussed in detail specific issues pertaining to particular institutions.
The Central Bank has requested all banks, NBFIs and others who are involved in the process to continue a close dialogue with it and obtain guidance if the need arises.
In keeping with the Central Bank's request, the banks and NBFIs have agreed to submit their preliminary proposals regarding the consolidation effort by 31March 2014.
The Central Bank meanwhile informs the general public that the Consolidation process will not, in any way, affect their current transactions and deposits with the banks and finance companies, with whom they are presently transacting.