July 21, 2011 (LBO ) – Sri Lanka will introduce ‘fit and proper’ tests for senior executives of non-bank lenders, following on from similar rules for commercial banks, deputy central bank governor Dharma Dheerasinghe said. Fit and proper rules are also expected to be imposed on leasing companies in the future. The measures are aimed at improving financial discipline in deposit taking institutions, officials said.
He said the Monetary Board, the regulator’s top decision making body, has already approved the rules for registered finance companies.
In commercial banks, officers in general management, chief financial officer, chief risk officer, chief internal auditor, heads of treasury, legal and information technology are covered by the rules.
The central bank has already taken action on two occasions at commercial banks, according to other regulatory officials.