Central Bank has initiated a drafting a new banking act and expects completed its enactment in 2021.
The proposed act will provide provisions to introduce a single type of banking licence for licenced commercial banks and licenced specialized banks, Central Bank Governor W.D. Lakshman said at the releasing of the bank’s road map 2020 in Colombo today.
The new banking act will contain provisions to extend regulations for banks which are to be established in the Colombo International Financial centre , the Colombo Port City .
Unveiling details in the road map he said that measurers will be taken to adopt banking regulations commensurate with bank’s size and its nature of operations etc., he added.
The other aspect of the act is the subsidiarisation of banks incorporated outside Sri Lanka and allowing to ring fence subsidiaries from adverse external shocks.
Banking regulations will vary based on bank sizes and their nature of operations Lakshman said.
Banks’ offshore and domestic banking units will be merged to a single business under the new law.
Looking forward to a strong and dynamic banking sector, capital ratios are expected to improve with the infusion of capital to meet the enhanced minimum cap[ital requirement for banks by end 2030, he added.
(LI)