CB suspends Pan Asia Bank primary dealership for 6 months

Aug 15, 2017 (LBO) – Sri Lanka’s Central Bank has suspended business activities of the primary dealer of Pan Asia Banking Corporation (PABC) for a period of six months with effect from Tuesday.

Releasing a statement, the Central Bank said the regulatory action is based on the findings of an investigation carried out by them related to PABC’s transactions with Perpetual Treasuries in the government securities market.

“The Central Bank wishes to inform the general public that the above regulatory action does not in any way affect PABC’s ability to carry on banking activities set out in Schedule II of the Banking Act as a Licensed Commercial Bank.”

“Accordingly, PABC may continue to deal in government securities to the extent permitted under schedule II of the Banking Act.”

The Central Bank said action will also be taken to safeguard the interests of the customers and counterparties of PABC in the government securities market, in an orderly manner.

The Central Bank emphasized that this regulatory action restricts PABC’s access to the primary auctions for government securities but does not affect any of the other services of PABC.

Earlier last month, the monetary board of the Central Bank suspended Perpetual Treasuries from carrying on the business and activities of a primary dealer for a period of six months.