Annual licence fee for banks hiked first time in 3 years

Thursday, 30 December 2021 01:55 - - {{hitsCtrl.values.hits}}

The Central Bank has announced a sharp increase in the annual licence fee for banks in 2022 after keeping the amount unchanged for several years.

Licence fee for the biggest banks, whose assets are above Rs. 2 trillion, is Rs. 38 million. For banks with assets over Rs. 1-2 trillion, it’s Rs. 35 million. For those between Rs. 500 billion to Rs. 1 trillion, the fee is Rs. 28.5 million. The fee will be Rs. 25 million for banks whose assets are between Rs. 200-500 billion, and Rs. 18.5 million for those between Rs. 125-200 billion. For banks between Rs. 75 and Rs. 125 billion in assets, the fee is Rs. 12.5 million. For those between Rs. 25-75 billion, the fee is Rs. 6.5 million and for banks whose assets are below Rs. 25 billion, it’s Rs. 3.3 million.

The last upward revision in annual licence fee was made in 2019, and CBSL didn’t change it in view of the pandemic and its impact.

In tandem with growth in the banking sector, the categorisation of banks in terms of assets has been changed.

Previously, banks above Rs. 1 trillion paid a fee of Rs. 33 million. Above Rs. 750 billion and Rs. 1 trillion (Rs. 32 million), Above Rs. 500-750 billion (Rs. 26 million), Above Rs. 200-500 billion (Rs. 23 million), Above Rs. 125-200 billion (Rs. 17 million), Between Rs. 75-125 billion (Rs. 11.6 million), Between Rs. 25-75 billion (Rs. 6 million) and less than Rs. 25 billion (Rs. 3 million).