The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
»  Rajgama Heroes !
People’s Bank, Sampath, and DFCC face penalties EmptyYesterday at 12:06 pm by කිත්සිරි ද සිල්වා

» Coronavirus Updates
People’s Bank, Sampath, and DFCC face penalties EmptyYesterday at 7:26 am by The Invisible

» Thread for News on CSE and SL Economy
People’s Bank, Sampath, and DFCC face penalties EmptyYesterday at 7:17 am by The Invisible

» Access Engineering AEL Technical Analysis
People’s Bank, Sampath, and DFCC face penalties EmptyYesterday at 7:14 am by The Invisible

» In the Meantime, Within Our Shores !
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jul 02, 2020 10:35 pm by කිත්සිරි ද සිල්වා

» Obituary Notice.
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jul 01, 2020 12:51 pm by කිත්සිරි ද සිල්වා

»  6000 Post Club , Celebration of a Great Milestone, Slstock
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 30, 2020 9:35 am by slstock

» LIOC.N0000 (Lanka IOC PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 30, 2020 8:00 am by LSE

» How to get Access to: 104 Technical trading experiments by HUNTER
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 29, 2020 9:35 am by nuwanmja

» Sri Lanka to monetize tens of billions of contractor bills
People’s Bank, Sampath, and DFCC face penalties EmptySun Jun 28, 2020 10:30 am by The Invisible

» 104 Technical trading experiments by HUNTER
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 27, 2020 10:27 pm by HUNTER

» CFVF - First Capital
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 27, 2020 10:22 pm by HUNTER

» RCL - Royal Ceramics
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 27, 2020 4:02 am by desh87

» Stocks - Banks Drag Wall Street Lower After Fed Buyback Ban; Dow Down 290
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 26, 2020 11:35 pm by nihal123

» Sri Lanka plans US$4bn PPP for LRT in place of Japan funded soft-loan project
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jun 25, 2020 8:57 pm by The Invisible

» PABC.N0000 (Pan Asia Banking Corporation PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 24, 2020 10:37 pm by seek

» JKH.N0000
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 24, 2020 9:33 pm by The Invisible

» Plantation sector updates
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 24, 2020 10:32 am by The Invisible

» Dividend Announcements
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 23, 2020 4:00 pm by Rana

» LOLC Holdings
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 22, 2020 3:40 pm by Rajapaksap

» Sri Lanka bank bad loans in March 2020 pick up to 5.1-pct
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 22, 2020 12:50 pm by The Invisible

» The Central Bank of Sri Lanka Further Reduces the Statutory Reserve Ratio
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 22, 2020 11:53 am by nihal123

» Sri Lanka tea prices pickup marginally mid June
People’s Bank, Sampath, and DFCC face penalties EmptySun Jun 21, 2020 8:11 pm by The Invisible

» කොළඹ කොටස් වෙළඳපොළ ඩිජිටල්කරණය කිරීමේ වැඩපිළිවෙල ඇරඹෙයි
People’s Bank, Sampath, and DFCC face penalties EmptySun Jun 21, 2020 12:55 pm by HUNTER

» Sri Lankans stock up, buy online in Covid-19 curfews, informal workers hard-hit: survey
People’s Bank, Sampath, and DFCC face penalties EmptySun Jun 21, 2020 9:34 am by The Invisible

» Sri Lanka chicken supplies to tighten after Covid-19 crisis, maize import controls
People’s Bank, Sampath, and DFCC face penalties EmptySun Jun 21, 2020 9:32 am by The Invisible

» S&P SL20 සමාගම් ලැයිස්තුවේ වෙනසක්.
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 20, 2020 7:56 am by slstock

» HNB රුපියල් බිලියන 5ක ණය යෝජනා ක‍්‍රමයක් දියත් කරයි
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 19, 2020 10:47 pm by nihal123

» SAMP.N0000 (Sampath Bank PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 19, 2020 1:08 pm by dakzsl

» HAYC - Haycarb
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 19, 2020 12:04 pm by Rational Investor

» විශාලම ලැයිස්තුගත සමාගම් 50 විනිවිදභාවය පිළිබඳ වාර්තාවක් එළිදැක්වෙයි
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jun 18, 2020 11:13 pm by nihal123

» HAYL.N0000 Hayleys PLC
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jun 18, 2020 7:53 pm by NIRMALSG

» GLAS.N0000 (Piramal Glass Ceylon PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 17, 2020 12:29 pm by nuwanmja

» Sri Lanka bank forex funding pressures, bad loans to rise after Covid-19: Fitch
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 17, 2020 10:43 am by The Invisible

» Sri Lanka telecom regulator asked find businesses to use Lotus Tower
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 17, 2020 10:33 am by The Invisible

» Gota's Era
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 16, 2020 2:40 pm by puliyanam

» Fitch Revises Ratings on 11 Sri Lankan Financial
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 13, 2020 11:58 am by spw19721

» Carlton Sports Network to resume broadcasts soon – Rohan Welivita
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 12, 2020 11:27 am by Rajapaksap

» සල්ලි අච්චු ගැසුවාද?
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 10, 2020 11:35 pm by nihal123

» වටිනා පාඩමක්!
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 10, 2020 9:58 pm by Backstage

» Sri Lanka’s General Election on August 05
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 10, 2020 3:08 pm by The Invisible

» Hayleys MGT
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 09, 2020 11:16 am by The Invisible

» AEL Access Engineering
People’s Bank, Sampath, and DFCC face penalties EmptyTue Jun 09, 2020 11:08 am by The Invisible

» Sri Lanka import controls, cargo bottleneck hit apparel exporters
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 08, 2020 4:12 pm by The Invisible

» Sri Lanka tea prices ease lower, low growns drive May average to all time high
People’s Bank, Sampath, and DFCC face penalties EmptyMon Jun 08, 2020 8:47 am by slstock

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
People’s Bank, Sampath, and DFCC face penalties EmptySat Jun 06, 2020 3:05 pm by Antonym

» Sri Lanka makes trillion rupee mini-budget till August under Presidential powers
People’s Bank, Sampath, and DFCC face penalties EmptyFri Jun 05, 2020 10:48 am by The Invisible

» HHL.N0000 ( Hemas Holdings PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jun 04, 2020 4:32 pm by Backstage

» LION.N0000 (Lion Brewery Ceylon PLC)
People’s Bank, Sampath, and DFCC face penalties EmptyThu Jun 04, 2020 2:21 pm by The Invisible

» කොටස්--වෙළෙඳපොළ--වැසුවාද
People’s Bank, Sampath, and DFCC face penalties EmptyWed Jun 03, 2020 9:49 pm by nihal123

July 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 : 6322
Join date : 2014-02-24
Age : 54
Location : Waga

Back to top Go down

Back to top


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