Empower your business in Sri Lanka and internationally with Prifinance expert corporate and financial services. Streamline company formation and investment opportunities with our tailored advice and solutions.

Few Tweaks

January 8, 2007 (LBO) – Sri Lanka's Central Bank plans to revise the way commercial banks' compute the single borrower limit, as part of its drive to strengthen the banking system. "We are looking at revising the Single Borrower Limit in line with improved risk management by banks," Governor Nivard Cabraal said.

Presently, a single company, corporation, firm association of persons/individuals can borrow up to 30 percent of the bank's capital.

Under the proposed amendments, the 30 percent limit for a single entity remains. But if it's a group company, the single borrower limit goes up to 33 percent.

Further increases will be determined based on the credit rating of the bank and the customer and the capital adequacy ratio of th
Notify of
Inline Feedbacks
View all comments
© 2001-2024 Lanka Business Online (Pvt) Ltd. All rights reserved.
Designed by Lanka Business Online (Pvt) Ltd.
Would love your thoughts, please comment.x