NDB continues to operate with capital & liquidity levels well above minimum regulatory requirements: CBSL

The Central Bank of Sri Lanka (CBSL) says it has been closely monitoring developments at National Development Bank PLC (NDB) following the recent disclosure of an internal fraud.

According to CBSL, assessments carried out so far show that NDB continues to operate with capital and liquidity levels well above the minimum regulatory requirements. The incident has not affected customer accounts or deposits, which remain safe and secure.

CBSL adds that it maintains close and continuous engagement with the bank and relevant stakeholders. It also stands ready to take any measures, if required, to safeguard the stability of the bank and protect the interests of depositors.

Meanwhile, Fitch Ratings has downgraded NDB’s National Long-Term Rating to ‘A-(lka)’ from ‘A(lka)’, with a Negative Outlook. Fitch has also downgraded the rating assigned to NDB’s Basel III-compliant subordinated debentures to ‘BBB(lka)’ from ‘BBB+(lka)’.