Re: NBFI Sector

[sereneTop contributor]

Still 90% ceiling is valid

The statement made by Ravi K of reversing to 70% still not valid as he is not the minister responsible for banks and finance...

So much of Scientific base of Ministerial Portfolios

YK it should be other way round neda?
70% Ceiling is still valid and Ravis later said 90% is not valid yet.

[yellow knifeTop contributor]

Oh my god...Thanx for the correction Serene...

[sereneTop contributor]

Oh my god...Thanx for the correction Serene...

[Market loverTop contributor]

Still 90% ceiling is valid

The statement made by Ravi K of reversing to 70% still not valid as he is not the minister responsible for banks and finance...

So much of Scientific base of Ministerial Portfolios

YK it should be other way round neda?
70% Ceiling is still valid and Ravis later said 90% is not valid yet.

Just now spoke to kiribathgoda Central finance guys the 70% is what u get the maximum lease not 90% as it's not yet been approved by the central bank.

[yellow knifeTop contributor]

NBFI sector results will be good.

1. Vehicle price increased. That force existing customers to pay without delay. NPL will be healthy

2. Second hand price has gone up. Tenders will be profitable removing disposal losses

3. September was the highest month of vehicle registration.

[yellow knifeTop contributor]

90% leasing facility  for motor vehicles will be effectove from today. CBSL to inform all private and state banks..Finance Ministry... Ada Dearana SMS Alert

[yellow knifeTop contributor]

December 8, 2015 at 3:00 pm | lanka C news

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අර්බුදයට ලක්වන මූල්‍ය ආයතන ප්‍රතිප්‍රාග්ධනීකරණයට සහාය වීමේ සහ ඒවායේ අර්බුදයට ලක්වී ඇති වත්කම් භාරගෙන එම ආයතන ප්‍රතිව්‍යූහගත කිරීමේ අරමුණින් කටයුතු කිරීමට මූල්‍ය ආයතන ප්‍රතිව්‍යූහගත කිරීමේ ආයතනයක් (Financial Intitutions Restucturing Agency – FIRA) ස්ථාපිත කිරීමට රජය සැලසුම් කර ඇත.
මෙම ආයතනය වෙත මූලික අදියරේ දී ප්‍රාග්ධනය වශයෙන් රුපියල් මිලියන 10 ක් සහ වසර 5 කින් කල්පිරෙන රුපියල් බිලියන 25 ක් වටිනා භාණ්ඩාගාර බැඳුම්කර ලබා දීමට රජය කටයුතු කරනු ලබයි.
මෙහිදී ප්‍රතිව්‍යූහගත කරන මූල්‍ය ආයතන ශ්‍රී ලංකා මහ බැංකුවේ දැඩි අධීක්ෂණයට යටත් වනු ඇත. මේ සඳහා ප්‍රවේශයක් ලෙස තැන්පත්කරුවන්ට ආරක්ෂාව සහ සහනයක් ලබාදීමට ශ්‍රී ලංකා මහ බැංකුව විසින් 100% ක ඇපකරයක් සියලූම ලියාපදිංචි මූල්‍ය ආයතනවල තැන්පත්කරුවන් සඳහා 2016 ජනවාරි මස අග භාගයේ දී ලබා දීමට නියමිතය.
මුදල් අමාත්‍යවරයා විසින් පාර්ලිමේන්තුවට ඉදිරිපත් කරන ලද නවතම අයවැය යෝජනාවල මේ පිළිබඳ සඳහන් වේ

[slstockVeteran]

Is this not only regarding previously troubled one right?

"තැන්පත්කරුවන්ට ආරක්ෂාව සහ සහනයක් ලබාදීමට ශ්‍රී ලංකා මහ බැංකුව විසින් 100% ක ඇපකරයක් සියලූම ලියාපදිංචි මූල්‍ය ආයතනවල තැන්පත්කරුවන් සඳහා 2016 ජනවාරි මස අග භාගයේ දී ලබා දීමට නියමිතය."

Am trying to figure how on earth theuy can give guantee to all Finco deposits. How much money should there be for that? Just add deposits of PLC + CFIN,LFIN, COCR itself . Thats simply massive.

December 8, 2015 at 3:00 pm | lanka C news

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අර්බුදයට ලක්වන මූල්‍ය ආයතන ප්‍රතිප්‍රාග්ධනීකරණයට සහාය වීමේ සහ ඒවායේ අර්බුදයට ලක්වී ඇති වත්කම් භාරගෙන එම ආයතන ප්‍රතිව්‍යූහගත කිරීමේ අරමුණින් කටයුතු කිරීමට මූල්‍ය ආයතන ප්‍රතිව්‍යූහගත කිරීමේ ආයතනයක් (Financial Intitutions Restucturing Agency – FIRA) ස්ථාපිත කිරීමට රජය සැලසුම් කර ඇත.
මෙම ආයතනය වෙත මූලික අදියරේ දී ප්‍රාග්ධනය වශයෙන් රුපියල් මිලියන 10 ක් සහ වසර 5 කින් කල්පිරෙන රුපියල් බිලියන 25 ක් වටිනා භාණ්ඩාගාර බැඳුම්කර ලබා දීමට රජය කටයුතු කරනු ලබයි.
මෙහිදී ප්‍රතිව්‍යූහගත කරන මූල්‍ය ආයතන ශ්‍රී ලංකා මහ බැංකුවේ දැඩි අධීක්ෂණයට යටත් වනු ඇත. මේ සඳහා ප්‍රවේශයක් ලෙස තැන්පත්කරුවන්ට ආරක්ෂාව සහ සහනයක් ලබාදීමට ශ්‍රී ලංකා මහ බැංකුව විසින් 100% ක ඇපකරයක් සියලූම ලියාපදිංචි මූල්‍ය ආයතනවල තැන්පත්කරුවන් සඳහා 2016 ජනවාරි මස අග භාගයේ දී ලබා දීමට නියමිතය.
මුදල් අමාත්‍යවරයා විසින් පාර්ලිමේන්තුවට ඉදිරිපත් කරන ලද නවතම අයවැය යෝජනාවල මේ පිළිබඳ සඳහන් වේ

[yellow knifeTop contributor]

100% on all deposits of Fiance companies...yes the amount is massive..

[slstockVeteran]

Yes I know. But am not sure how this is done.

How much money do they need for this reserve for this if handled by CB.

Else this maybe like insurance scheme.

That a though , there are no insurance companies to do such in SL right ?
Are there?

100% on all deposits of Fiance companies...yes the amount is massive..

[yellow knifeTop contributor]

Yes how they are going to operate is yet not known...

[yellow knifeTop contributor]

Upadeshana Service of CBSL and Financial Ombudsman assist those who are in debtors in distress.

Surprisingly today news papers (24th August 2016) ( Lankadeepa )

publishes a full page advertisement about a limited liability company registered under company act 2007 and chaired by infamous Mervy Silva to do the same task.

I think the regulator should monitor the activities of such and its legality. Having an association of debtors is different from having a registered company with the prime objective of doing Financial Ombudsman service ..

We remember how Duminda Silva then the MP was appointed to Touchwood directorship just to frighten the possible inquirers at AGM.

[yellow knifeTop contributor]

Banks to raise loan rates as CB abandons caps

*  Several banks inform customers of upcoming higher credit card rates...

* Credit cared interest rates likely to top 28% per annum

* Higher rates on housing loans, overdrafts likely

* Banks also mull higher penal rates on late payments

Source : Daily Mirror

[Future123Active Member]

Thanks YK. This is somewhat bad news for the economy. The interest rates should go down for more economic activities.

Charging 28% on credit cards is a crime.

Banks to raise loan rates as CB abandons caps

*  Several banks inform customers of upcoming higher credit card rates...

* Credit cared interest rates likely to top 28% per annum

* Higher rates on housing loans, overdrafts likely

* Banks also mull higher penal rates on late payments

Source : Daily Mirror

[Ethical TraderTop contributor]

Thanks YK.

Usually, removing interest rate caps are considered as a step towards liberalizing the supply of money in the market. As a result, the Banks will have to compete with each other for survival, thus bringing down the interest rates further to a level sustainable as per market conditions.

Of course, initial hiccups would be there as predicted by the paper, but in the long run, rates will stabilize @ sustainable levels. This is good for the economy.

[Future123Active Member]

Different view ET. Good.

If the lending rates go up, the cost of borrowed funds (interest expenses) would go up. This will impact the businesses and individuals.

Is the ceiling on deposit rates also relaxed? If so, people will put their money in FD and do nothing. This will affect the economic growth as new businesses won't start up.

Thanks YK.

Usually, removing interest rate caps are considered as a step towards liberalizing the supply of money in the market. As a result, the Banks will have to compete with each other for survival, thus bringing down the interest rates further to a level sustainable as per market conditions.

Of course, initial hiccups would be there as predicted by the paper, but in the long run, rates will stabilize @ sustainable levels. This is good for the economy.

[yellow knifeTop contributor]

It seems there are two challenged ahead for the Finance Companies.

1. Dialog acquisition of Colombo Trust Finance PLC.

Dialog acquired 80.34% of CTF from Cargills Bank Limited at the value of Rs 1.1 Billion.

Now Dialog is ready to invest further 550 Million to reach the regulatory minimum of 1 Billion as the company already core capital of Rs 450 million.

This company already include 43 employees and only two branches.

Dialog plans to set up country's first digital bank next year.

2. Crowd funding is becoming popular in the world. The world is changing. Uber is running a taxi service owning no vehicle or a driver. Airbandb operates accommodation service owning no hotel. Crowd funding would be a threatening approach initially to NBFIs and later to banks.