Seminar on Consolidation in financial institutions
As already set out in the Road Map 2014 and beyond, the Central Bank
conducted a seminar recently to explain the need and the rationale for
the consolidation in the banking and non-banking financial institutions
(NBFIs) beginning this year.
Chairmen and Chief Executive Officers of banks and non-bank financial
institutions (NBFIs), key management of the audit firms which are
eligible to audit banks and NBFIs, and representatives of the Institute
of Chartered Accountants of Sri Lanka and the Institute of Personnel
Management were present.
The Central Bank's senior management held one-on-one meetings with
almost all boards of directors and senior management of the local banks
and NBFIs, at which the expectations of the Consolidation process was
further clarified and specific issues pertaining to particular
institutions were discussed in detail.
The Central Bank also informed the banks and NBFIs to approach the
Consolidation process in a professional manner by seeking specialised
IT, legal, tax and HR services to ensure the objectivity and integrity
of the process. In addition, the Central Bank called upon all banks,
NBFIs and others who are involved in the process to continue a close
dialogue with the Central Bank and obtain guidance if the need arises.
In this regard, the members of the special unit headed by the
Assistant Governor were introduced to the banks and NBFIs at these
meetings. In keeping with the directive of the Central Bank, banks and
NBFIs agreed to submit their preliminary proposals regarding the
consolidation effort by March 31.
A meeting was also held with key office-bearers of the Ceylon Bank
Employees' Union, at which all clarifications sought were provided by
the Governor Ajith Nivard Cabraal and senior officials of the Central