The single borrower limit goes up to 33 percent of the bank’s capital for group companies, the Central Bank said in a statement.
Based on the risk status, measured on the basis of capital adequacy ratio of the bank and credit ratings of the bank and customer, there are enhanced limits of 36 percent and 40 percent for a group of companies.
In the event any customer has been given accommodation in excess of 15 per cent of capital base, the total given for all such customers cannot exceed 55 per cent of total outstanding accommodation granted by the bank to all customers.
Banks are also allowed under the revised rules, to provide up to 50 percent of the bank’s capital for infrastructure projects on a case-by-case basis with approval by the Monetary Board.
The maximum limits will not apply to the government, to the Ceylon Petroleum Corporation and