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

Display results as :
 


Rechercher Advanced Search

Latest topics
» Obituary Notice.
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jan 14, 2020 4:14 pm by ipo

» LOLC Holdings
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jan 13, 2020 6:04 pm by smallville

» SEYB.N0000 (Seylan Bank PLC)
People’s Bank, Sampath, and DFCC face penalties EmptySun Jan 12, 2020 10:06 pm by subash

» Happy Birthday
People’s Bank, Sampath, and DFCC face penalties EmptySun Jan 12, 2020 9:16 pm by lanka

» In the Meantime, Within Our Shores !
People’s Bank, Sampath, and DFCC face penalties EmptySun Jan 12, 2020 10:46 am by කිත්සිරි ද සිල්වා

» අසාදුගත ව්‍යාපාරිකයින්ට රජයෙන් දුන් සහනය මෙන්න
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jan 10, 2020 9:42 am by කිත්සිරි ද සිල්වා

» ශ්‍රී ලංකා කොටස් වෙළෙඳපොළ ඉතිහාසයේ දෙවැනි විශාලතම කොටස් ගනුදෙනුව අද
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jan 09, 2020 9:59 pm by nihal123

» Hayleys MGT
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jan 09, 2020 5:40 pm by subash

» Browns Investments update
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jan 09, 2020 10:42 am by The Invisible

» Gota's Era
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jan 09, 2020 9:53 am by yellow knife

» Tokyo Cement
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:48 pm by The Invisible

» Lanka Tiles
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:44 pm by The Invisible

» RCL - Royal Ceramics
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:39 pm by The Invisible

» AEL Access Engineering
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:30 pm by The Invisible

» Sri Lanka central bank to develop a cost-based rate to price loans
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:21 pm by The Invisible

» Dialog Finance
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 10:19 pm by The Invisible

» LIOC.N0000 (Lanka IOC PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 08, 2020 4:32 pm by LSE

» Tourism Sector
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jan 07, 2020 2:05 pm by nihal123

» Expolanka
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jan 07, 2020 1:18 am by Afourer

» Cartoon Today
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jan 06, 2020 2:41 pm by කිත්සිරි ද සිල්වා

» කොළඹ කොටස් හුවමාරුවෙහි නවතම ජංගම දුරකථන යෙදුම
People’s Bank, Sampath, and DFCC face penalties EmptySat Jan 04, 2020 7:36 pm by spw19721

» ඉරානයට කළ ප්‍රහාරයෙන් පසු යුරෝපයේ කොටස් වෙළඳපොළ රැසක් පහළ වැටෙයි
People’s Bank, Sampath, and DFCC face penalties EmptySat Jan 04, 2020 1:30 pm by nihal123

» VAT අදාළ නැති කට්ටිය මෙන්න. 50,000 ක ලැයිස්තුවක්
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jan 03, 2020 11:55 am by nihal123

» How to get Access to: 104 Technical trading experiments by HUNTER
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jan 02, 2020 9:20 am by Admin

» ලංකාවේ ලොකුම සමාගම මෙන්න. දුම්කොළ සමාගම අභිබවමින් ජෝන් කීල්ස් යළිත් පෙරමුණට
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 7:48 pm by Rana

» Thread for News on CSE and SL Economy
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 7:42 pm by nihal123

» Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 4:43 pm by nuwanmja

» Sri Lanka’s Cargills, Sampath, DFCC Bank says met lending rate ceilings
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 4:26 pm by NIRMALSG

» Dividend Announcement
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 1:16 pm by smallville

» Sri Lanka bank bad loans spike to 4.9-pct, non-banks 9.7-pct in Sept
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jan 01, 2020 9:29 am by The Invisible

» People’s Bank, Sampath, and DFCC face penalties
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 31, 2019 6:33 pm by nihal123

» NDB.N0000 (National Development Bank PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 31, 2019 1:55 am by Trend

» COMB.N0000 (Commercial Bank of Ceylon PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyThu Dec 26, 2019 9:23 pm by spw19721

» Thought for the day...
People’s Bank, Sampath, and DFCC face penalties EmptyThu Dec 26, 2019 3:41 pm by Topcat

» ඩොක්ටර් ඒලියන්ත වයිට්
People’s Bank, Sampath, and DFCC face penalties EmptyThu Dec 26, 2019 9:15 am by කිත්සිරි ද සිල්වා

» Why (Happy) People Cheat?
People’s Bank, Sampath, and DFCC face penalties EmptyWed Dec 25, 2019 8:34 pm by pjrngroup

» Who killed Cock Robin?
People’s Bank, Sampath, and DFCC face penalties EmptyWed Dec 25, 2019 8:33 pm by pjrngroup

» 65 Ways to Make Money Online
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 24, 2019 9:24 am by Topcat

» සුළු හා මධ්‍ය පරිමාණ ව්‍යාපාරිකයින් ලබාගත් ණය අයකර ගැනීම අත්හිටුවන්න
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 24, 2019 8:50 am by Topcat

» ACL Cables
People’s Bank, Sampath, and DFCC face penalties EmptySat Dec 21, 2019 5:34 am by NIRMALSG

» Sri Lanka to up employer EPF contribution to 15-pct, start social security fund
People’s Bank, Sampath, and DFCC face penalties EmptyWed Dec 18, 2019 2:46 pm by The Invisible

» රාජ්‍ය සමාගම් කොටස් වෙළෙඳපොළට ගෙන ආ යුතුයි
People’s Bank, Sampath, and DFCC face penalties EmptyFri Dec 13, 2019 12:37 pm by serene

» Sri Lanka can resume high growth path, cut more taxes: Mark Mobius
People’s Bank, Sampath, and DFCC face penalties EmptyThu Dec 12, 2019 9:29 am by The Alchemist

» රතු වැටෙනකොට
People’s Bank, Sampath, and DFCC face penalties EmptyWed Dec 11, 2019 2:59 pm by කිත්සිරි ද සිල්වා

» Sri Lanka interest rates should go down, currency will not fall: Mark Mobius
People’s Bank, Sampath, and DFCC face penalties EmptyWed Dec 11, 2019 11:18 am by The Invisible

» Equation of Happiness Solved
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 10, 2019 5:23 pm by Backstage

» තැරැව්කාර සමාගමකට එරෙහිව කොටස් වෙළෙඳපොළ විනය ක්‍රියාමාර්ග ගනී
People’s Bank, Sampath, and DFCC face penalties EmptyTue Dec 10, 2019 12:31 pm by Rana

» PABC.N0000 (Pan Asia Banking Corporation PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyMon Dec 09, 2019 6:41 pm by soileconomy

» East West properties
People’s Bank, Sampath, and DFCC face penalties EmptyMon Dec 09, 2019 10:01 am by LSE

» MHDL Millennium Housing
People’s Bank, Sampath, and DFCC face penalties EmptySat Dec 07, 2019 12:35 pm by pure equity

January 2020
SunMonTueWedThuFriSat
   1234
567891011
12131415161718
19202122232425
262728293031 

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

People’s Bank, Sampath, and DFCC face penalties

Go down

People’s Bank, Sampath, and DFCC face penalties Empty People’s Bank, Sampath, and DFCC face penalties

Post by nihal123 on Tue Dec 31, 2019 6:33 pm

People’s Bank, Sampath, and DFCC face penalties
DECEMBER 29, 2019 1 COMMENT
– Failure to comply with Central Bank lending rate cap

– Regulator to decide on exact penalties next week

People’s Bank, Sampath Bank PLC, and DFCC Bank PLC face penalties from the Central Bank of Sri Lanka (CBSL) for its lack of compliance with lending rate caps imposed by the banking sector regulator.

On 24 September 2019, the CBSL ordered licensed commercial banks (LCBs) to reduce the weekly Average Weighted Prime Lending Rate (AWPR) by 150 basis points (bps) by 1 November and by at least 250 basis points by 27 December, compared to the AWPR as at 26 April 2019.

This cap was mainly imposed to increase private sector credit growth as the Year-on-Year (YoY) growth of credit disbursed to the private sector by LCBs during the first seven months of 2019 grew slower than the corresponding period last year.

“From next week onwards, we will start imposing certain penalties or sanctions. Otherwise, it is unfair on the banks that have complied. There are about seven banks that need to bring the rate down by another 50 bps, which is highly unlikely. Out of these seven, there are three big banks, namely People’s Bank, Sampath Bank, and DFCC Bank,” noted CBSL Senior Deputy Governor Dr. P. Nandalal Weerasinghe, addressing the press briefing of the eighth and final Monetary Policy Review of 2019.

However, he added that the exact penalties and sanctions these banks would suffer had not been determined as yet.

“We will have to discuss with the Monetary Board first. There are several provisions in the Banking Act, so we have to decide on the basis of the extent of deviation and other factors. After we see the figures, we will decide what kind of actions those would trigger on individual banks.”

He added that while there were smaller banks such as Axis Bank Ltd., Public Bank Sri Lanka, and Cargills Bank Ltd., which had also failed to comply with the directive, the main impact on private sector credit growth was from the non-compliance of bigger banks.

In November, The Sunday Morning Business exclusively reported that the banking industry had largely fallen in line with the Central Bank lending rate caps, with six banks having even reached the rates specified for December at the time.

We compared the AWPRs of 25 banks as at 1 November with those of 26 April and found that Citibank, Seylan Bank PLC, Union Bank Sri Lanka, DFCC Bank, ICICI Bank Ltd., and Cargills Bank had already brought down their lending rates by over 250 basis points, which was the level the CBSL instructed banks to reach by the end of December.

Amongst these banks, Cargills Bank, Union Bank, and Seylan Bank had cut down their rates by over 300 points while, even among them, Union Bank had brought down its rate by 523 basis points.

Meanwhile, 14 banks had complied with the rate cut which was required to be made by 1 November, as they had brought down their lending rates by over 150 basis points.

These banks were Bank of Ceylon, Hatton National Bank PLC, People’s Bank, Sampath Bank, Habib Bank Ltd., Commercial Bank of Ceylon PLC, Indian Bank, Pan Asia Banking Corporation, Indian Overseas Bank, Nations Trust Bank PLC, NDB Bank PLC, State Bank of India, Amãna Bank, and Axis Bank.

Amongst the 25 banks, four banks, namely HSBC Sri Lanka, Standard Chartered PLC, Deutsche Bank, and MCB Bank, had reduced its respective lending rates, but the reduction was below 150 basis points.

Interestingly, Malaysia-based Public Bank’s lending rate had increased by 12 basis points as at 1 November compared with that of 26 April. Banks with AWPRs at or below 9.5% are excluded from this compulsory rate cut. As at 26 April, none of the banks had their lending rates below this threshold.

However, HSBC and State Bank of India, after reductions of 125 and 214 basis points, respectively, from their April levels, had qualified into this category as their lending rates were 8.59% and 9.36%, respectively, and did not require further reduction.

Meanwhile, the weekly AWPR came under 11% for the first time in more than a year in July this year.
The prime lending rate is the interest rate charged by Sri Lanka’s banks from their largest, most secure, and most creditworthy customers on short-term loans. This rate is used as a guide for computing interest rates for other borrowers. The weekly AWPR is the average prime lending rate among banks in a particular week.

A lower rate means more access to finance for businesses and entrepreneurs, enabling greater economic activity and growth. A week into the Easter Sunday incident, the AWPR went up to 12.24% from 11.99%, while during the political turmoil, which erupted on 26 October 2018 and lasted 51 days, the least AWPLR was 11.81% while the highest was 12.28%.

http://www.themorning.lk/peoples-bank-sampath-and-dfcc-face-penalties/
nihal123
nihal123
Top contributor
Top contributor

Posts : 5944
Join date : 2014-02-24
Age : 53
Location : Waga

Back to top Go down

Back to top


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