The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Male-Penned Songs On Women By Madani
Today at 7:50 pm by Backstage

» CB Chief cracks whip!
Today at 7:47 pm by Backstage

» Dividend Announcement
Today at 7:06 pm by Backstage

» Sri Lanka introduces concessions to boost faltering growth
Today at 7:05 pm by Backstage

» New taxes hamper life insurance industry
Today at 7:03 pm by Backstage

» Carrom Game between Chamil Cooray & Sandeep Deorukhkar in ICF Cup 2015
Today at 5:18 pm by sashimaal

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Today at 11:28 am by Ethical Trader

» EPF/ETF සහ විදේශ ශ්‍රමිකයෝ: නව බදු පනත ගැන මේ කරුණු දන්නවාද?
Yesterday at 6:03 pm by Rana

» ගෙවල්..වාහන..විදුලිය..සියල්ලටම දැන් ණය වර්ග අටක්..
Yesterday at 4:12 am by nihal123

» විදුලි සංදේශ බද්ද ඉවතට - යතුරුපැදි බදු අඩුවෙයි
Thu Aug 17, 2017 8:09 pm by nihal123

» දෙවන කාර්තුවේ ඉහළ වර්ධනය සමඟින් කොමර්ෂල් බැංකුව තවත් ශක්තිමත් වෙයි
Wed Aug 16, 2017 10:15 pm by nihal123

» අද වෙන්දේසියේ දී බිල්පත් පොළී නගී
Wed Aug 16, 2017 10:11 pm by nihal123

» ලක්‍ෂ්මන් සිල්වා DFCC බැංකුවේ ප‍්‍රධාන විධායක නිලධාරි තනතුරට
Wed Aug 16, 2017 12:29 pm by nihal123

» HOPL.N0000 ( Horana Plantations PLC)
Wed Aug 16, 2017 9:21 am by yellow knife

» පෑන් ඒෂියා බැංකුවේ ප්‍රාථමික අලෙවි කටයුතු මාස 06 කට අත්හිටුවයි
Tue Aug 15, 2017 1:16 pm by nihal123

» LIOC.N0000 (Lanka IOC PLC)
Mon Aug 14, 2017 2:37 pm by The Invisible

» Plantation sector updates
Sun Aug 13, 2017 4:51 pm by The Invisible

» අධිකරණ ඇමතිට ආණ්ඩු පක්ෂයෙන්ම විශ්වාස භංගයක්?
Sun Aug 13, 2017 7:52 am by smallville

» සොහොන් කොතේ නම 'අකැප' ඇෆ්ගන් කතුන්
Sat Aug 12, 2017 2:59 pm by Ethical Trader

» කොරියානු අර්බුදය හමුවේ ශ්‍රී ලංකාවේ සූදානම
Sat Aug 12, 2017 2:42 pm by Ethical Trader

» TJL.N0000 (Textured Jersey Lanka PLC.)
Sat Aug 12, 2017 2:10 pm by Ethical Trader

» කොරියාවේ උණුසුමට සංගීතයේ සිසිලස
Sat Aug 12, 2017 9:10 am by Ethical Trader

» මැක්‍රෝන් සිය බිරිඳට 'ජනාධිපති ආර්යා' නිල තත්වය නොදෙන ළකුණු
Fri Aug 11, 2017 10:39 pm by jiggysaurus

» Video of the day...
Fri Aug 11, 2017 4:24 pm by Rana

» Cartoon of the day...
Fri Aug 11, 2017 1:58 pm by Rana

» LWL.N0000 (Lanka Walltiles PLC)
Fri Aug 11, 2017 11:25 am by pjrngroup

» RICH N.0000 Richard Pieris and company PLC
Fri Aug 11, 2017 11:08 am by Ethical Trader

» විසිපන්දහසේ දඩය අනුමතයි - දඩ මුදල වැඩි කෙරුණු රථවාහන වැරදි මෙන්න
Thu Aug 10, 2017 9:29 pm by jiggysaurus

» ජනපති අගමැති ඇතුළු "සම්මුති ආණ්ඩුව වෙනුවෙන්" රවී ඇමති පුටුව අතහරි...
Thu Aug 10, 2017 7:13 pm by smallville

» KFP.N0000(Keels Food Products PLC)
Thu Aug 10, 2017 7:11 pm by pjrngroup

» රවී කරුණානායක ඉල්ලා අස්වෙයි
Thu Aug 10, 2017 7:11 pm by smallville

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Thu Aug 10, 2017 6:06 pm by Rana

» 10 Billion Dollar Companies Secretly Going Bankrupt !
Thu Aug 10, 2017 5:06 pm by කිත්සිරි ද සිල්වා

» SAMP.N0000 (SAMPATH BANK PLC)
Thu Aug 10, 2017 3:25 pm by The Invisible

» ඇමති රවී විශේෂ ප්‍රකාශයක් කරමින් ඉවත් වෙන්න සූදානම්
Thu Aug 10, 2017 12:54 pm by කිත්සිරි ද සිල්වා

» කැබිනට් රැස්වීමට නැහැ ; ඇමති රවී අස් වෙයිද? නැද්ද?
Thu Aug 10, 2017 9:53 am by Ethical Trader

» How cricket found – Rajgama heros !
Thu Aug 10, 2017 12:54 am by කිත්සිරි ද සිල්වා

» උ.කොරියාව, ඇමෙරිකාවේ 'ගුවාම්' දූපතට පහර දෙයි ද?
Wed Aug 09, 2017 5:54 pm by Ethical Trader

» බැඳුම්කර ගනුදෙනුවලින් පර්පෙචුවල් ට්‍රෙෂරීස්‌ සියයට 400ක්‌ ලාභ ලැබුවා
Wed Aug 09, 2017 3:07 pm by Ethical Trader

» කන්දත් නැහැ -පොලිසියේ රස්සාවත් නැහැ
Wed Aug 09, 2017 1:35 pm by Yin-Yang

» ASPI Status Update
Wed Aug 09, 2017 11:31 am by Ethical Trader

» Obituary Notice.
Wed Aug 09, 2017 8:58 am by කිත්සිරි ද සිල්වා

» Sri Lanka lagging in stock market development in the region’
Tue Aug 08, 2017 11:10 pm by Backstage

» PINS.N0000 ( PEOPLE'S INSURANCE PLC )
Tue Aug 08, 2017 11:01 pm by Backstage

» ඖෂධීය ගබඩාවක්. ගුණයෙන් අනුනයි
Tue Aug 08, 2017 10:30 pm by Backstage

» පැහැරගැනුණු නිරුපිකාව ගැලවේ: 'මැදපෙරදිගට විකිණීමේ තැතක්'
Tue Aug 08, 2017 6:55 pm by Ethical Trader

» ඩොලරය-සාපෙක්ෂව-රුපියල-සියයට-2.5කින්-අවප්‍රමාණයට
Mon Aug 07, 2017 8:14 pm by nihal123

» හිල්ටන් හෝටලයට වෙන්න යන දේ මෙන්න. සේවකයන්ටත් 4% ක කොටස්
Mon Aug 07, 2017 8:13 pm by nihal123

» "ඉවත් වන්න" - ඇමති රවීට ජනපති දන්වයි
Sun Aug 06, 2017 9:01 am by malanp

» කෝටි 15-20 වටිනා මොනවද මේ මොනාක්‌ රෙසිඩන්සිස්‌?
Sat Aug 05, 2017 2:47 pm by nihal123

August 2017
SunMonTueWedThuFriSat
  12345
6789101112
13141516171819
20212223242526
2728293031  

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

CB likely to raise interest cap on finance company deposits

View previous topic View next topic Go down

CB likely to raise interest cap on finance company deposits

Post by Backstage on Wed Oct 19, 2016 11:46 am

CB likely to raise interest cap on finance company deposits
2016-10-19 00:02:23


The Central Bank will soon raise the cap imposed on interest rates offered on deposits by finance companies as the current interest rate ceiling has become irrelevant in the rising interest rate environment, Mirror Business learns.


At a meeting held in September between the Central Bank officials and the licensed finance company (LFC) officials, it was agreed to raise the cap on interest rates which now stands at 12.5 percent.

Nevertheless, the regulator has still not indicated by how many basis points the ceiling rate would be raised as officials are still studying the situation.
Currently the upper limit of finance company deposit interest rates are linked to quarterly weighted average yield of 364-day treasury bill on which an additional percentage points (between 3.0 to 5.5 percent) is charged based on the maturity period of the fixed deposit.
This upper limit is calculated by the Director Non-bank Supervision Unit of the Central Bank and is disseminated among the finance companies after the end of each quarter in order to ensure the uniformity of the rates offered by all LFCs. During the first 9-months, the 364-days treasury bill rate has increased by as much as 281 basis points in response to tightening in the monetary policy at three occasions during 2016. Since the LFCs are now unable to increase its fixed deposit rate above 12.5 percent, they are seeing flight of deposits to the banks as the latter is offering rates, above 12.5 percent.
Currently there are 46 LFCs with Rs.481 billion deposit portfolio among them as of end 2015. Based on assets, the LFCs accounted for Rs.915 billion or 6.7 percent of the total financial system in the country.
The maiden budget of the coalition government proposed to provide the finance company deposits with 100 percent Central Bank guarantee from the end of January 2016, but it never came to fruition as the banks warned the Finance Ministry against the proposal as it could create a flight of deposit from the banks to the finance companies. Many of such proposals included in the budget 2016 which are in favour of the LFCs such as banning of leasing by the banks, offering 15 percent interest rates for senior citizen deposits up to Rs.1.5 million via LFCs could not be implemented.
It was only last week Mirror Business reported that the government could discontinue the 15 percent interest rate scheme offered on senior citizen deposits in the forthcoming budget as it makes no sense to continue the scheme when the market interest rates have risen considerably during the course of the year. Nevertheless, analysts caution any delay in lifting the cap on interest rates could deepen the woes of some of the finance companies who already grapple with serious liquidity crises as the flight of deposits into banks could worsen their worries.


At the same time, a potential increase in LFCs’ deposit interest rate cap could intensify the competition for the banks in raising deposits as the conditions are already challenging for raising deposits.



avatar
Backstage
Top contributor
Top contributor

Posts : 3099
Join date : 2014-02-24

Back to top Go down

View previous topic View next topic Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum