CCC to submit recommendations on financial sector consolidation to CB

Tuesday, 25 March 2014 00:32 - - {{hitsCtrl.values.hits}}

By Shabiya Ali Ahlam The Ceylon Chamber of Commerce (CCC), in its efforts to support the Government strengthen the private sector, said yesterday it is in the process of compiling recommendations for the Central Bank of Sri Lanka (CBSL) on how the recently-announced financial consolidation process could be better handled. Noting that consolidation will provide a positive drive to the financial services sector, senior officials of the CCC expressed the approach could be further improved. Speaking at a press conference held to announce the 175th anniversary of the institution, CCC Deputy Chairman Rajendra Theagarajah said: “I believe that the chamber has looked at this (consolidation) as a policy and we agree it is a good time for the sector to be looked at. However, the chamber will be shortly putting forward recommendations to the CBSL since, while broadly agreeing with the consolidation, the process in which this is being approached could be further improved.” The recommendation will be presented to the CBSL after the deadline set for the industries to submit their proposals, 31 March 2014. They will be presented to the CBSL within the next month or so. CCC officials shared that the process was carefully studied by two committees, of which one comprised members of the financial sector and the other members of the private sector. According to CCC, both groups confirmed the consolidation process is the way forward but pointed out minor issues that need to be addressed. Questioned on the issues identified, the CCC refused to reveal them since it plans on sharing the same along with recommendations to the CBSL before presenting it to the public.

DFCC, NDB sign MOU for merger

DFCC Bank and NDB yesterday announced that they have signed a Memorandum of Understanding (MOU) as a step towards the proposed merger. The Boards of both DFCC and NDB reiterated that there have been no definite decisions on any aspect of such consolidation at this stage, and will duly inform of the progress in this connection as and when necessary. The MOU was in pursuance to the policies announced by the Government to encourage consolidation of certain banking businesses.