Bankers

Five C’s of credit That mean characteristics of credit, Character A lender’s opinion of a borrower’s general trustworthiness, credibility and personality. It matters in the banks want to lend to people who are responsible and keep commitments. It can be assessed from credentials, references, reputation and interaction with lenders. Character is something you can control and promote, but only if you have a bank that cares about relationships.   Capacity Your ability to repay the loan, the matter is a business must generate enough cash flow to repay the loan. Loans are a form of debt, and they must be repaid in full. It can be assessed form financial metrics and benchmarks, credit score, borrowing and repayment history. Capital  The amount of money invested by the business owner or management team. Banks are more willing to lend to those who have invested some of their own money into the venture. Most lenders are not willing to take on 100 % of the financial risk, ...

SMALL AND MEDIUM ENTERPRISES Small and medium sized enterprises are non-subsidiary, independent firms which employ fewer than a given number of employees, Small firms are generally those with fewer than 50 employees, while micro-enterprises have at most 10 or in some cases 5 workers. SMEs make up a large part of Sri Lanka’s economy, accounting for 80 per cent of all businesses. These are found in all sectors of the economy, primary, secondary and tertiary and provide employment for persons of different skills, skilled, semi-skilled and unskilled. In the agri-business sector SMEs accounts for about 20 percent and in the service sector SMEs accounts for more than 90 percent. Several important points of policy relevance regarding employment in SMEs are noted below, There is a gender bias in SME employment. Workers employed in SMEs are predominantly men.  Good equal employment practices are needed to correct the above bias and to attract, recruit, retain and promote women in S...

BASEL COMMITTEE ON BANKING SUPERVISION. History of the BASEL Committee  The Central Bank governors of the group of ten countries set up the BASEL Committee called Banking Regulations and Supervisory Practices Committee in 1974 due to serious disturbances in international currency and banking markets. The BASEL Committee established international settlements in Bank for enhance financial stability by improving the quality of banking supervision worldwide and to serve as a forum for regular cooperation between its member countries on banking supervisory matters. The Committee’s first meeting took place in February 1975 and meetings have been held regularly three or four times a year since. Overview of the Committee The BASEL Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. It seeks to promote and strengthen supervisory and risk management practices globally. Its 45 members comprise central banks and bank supervisors f...

History of Central Bank of Sir Lanka To accommodate dynamic economic and financial system developments upon gaining independence in 1948, the post-independence Government of Ceylon established the Central Bank of Ceylon to maintain an active monetary policy regime and a dynamic financial sector to support and promote economic growth. As well as prior to the establishment of the central bank, the Currency Board System set up under the Paper Currency Ordinance No.32 of 1884 functioned as the country’s Monetary Authority, though very narrow in its capacity.  Technical expertise to establish a central bank was sought from the United States of America (USA) in July 1948, with Mr. John Exter. The Exter Report on the rationale and the legal framework for a central bank was presented to the House of Representatives in November 1949. Along with this report, a draft bill with explanatory comments was presented as part II of the report. The Bill was passed by the House as the Mone...

Registration of banks and its importance to the economy The regulatory and supervisor framework for banks is specified mainly in the banking Act,and the Monetary Law Act. Licensing of commercial banks and specialised banks  Issue Prudential directions, determination, orders and guidelines to banks Conduct continuous supervision and examination of banks. Enforce regulatory action and the resolution of weaker banks.  The regulatory and supervisory function relating to banks licensed by the Monetary Board is carried out by the Bank Supervision Department of the Central Bank.the supervision of banks is based on the international accepted standards for bank Supervision set out by the Basel committee for Banking supervision. The director of Bank Supervision or her nominee is given powers to examine the books and accounts of Every commercial bank or A subsidiary or An agency of such bank in Sri Lanka  The department of Bank Supervision was one of the two main ...