Seylan Bank stable - customers need not panic - CEO
by Lalin FERNANDOPULLE
|
Governor, Central Bank, Ajith Nivard Cabraal
Pic:Wimal Karunatilleke
|
The financial status of Seylan Bank is stable and customers need not
fear or panic over any uncertainty about their deposits, said CEO,
Seylan Bank PLC, Ajitha Pasqual
following the decision taken by the Central Bank to appoint a new
Board of Directors for the Seylan Bank to ensure stability and
continuity of services.
Pasqual said that the Bank welcomes the support of the Central Bank
and the Bank of Ceylon (BoC) to ensure financial stability and
continuity of its services.
“Seylan Bank has been in business for a long period and will continue
to serve its valued customers competing with the rest of the Banks in
the country as an indigenous bank,” he said. Pasqual said share trading
of Seylan Bank continued and other activities resumed early in the week.
The Bank ensures customers’ safety and the stability of the financial
system and customers need not panic as steps have been taken to ensure
continuity of the services.
Governor, Central Bank, Ajith Nivard Cabraal said customers should
continue to transact with the Seylan Bank and they need not fear any
risk as the Central Bank has taken steps to ensure stability of the
financial system of the bank.
“The Central Bank fully supports the new partnership and will ensure
that normalcy is restored speedily. The employees of Seylan Bank will
continue to serve the bank under the CEO”, he said.
|
Seylan Bank has been in business for a long period and will
continue to serve its valued customers Pic: Chinthaka
Kumarasinghe |
Former General Manager, National Savings Bank, Eastman Narangoda was
appointed Chairman of Seylan Bank PLC.
The BoC will continue to manage Seylan Bank until the banking
community and the country gain confidence and the financial stability of
the bank is restored.
The Governor said the new management of Seylan Bank comprises eminent
personalities who will steer the bank in the right direction.
“It is the role of the Central Bank to intervene when a registered
financial institution faces a liquidity crisis. Any economy may face a
liquidity crisis due to the current global financial crisis”, Cabraal
said. The Governor said the Central Bank has launched investigations on
many registered financial institutions but declined to state the names
of the institutions.
The Monetary Board of the Central Bank discontinued the services of
all current directors of Seylan Bank PLC and appointed Bank of Ceylon to
carry on the business of Seylan Bank under Section 30 (1) of the
Monetary Law Act No.58 of 1949.
The Monetary Board called upon the BoC to appoint the new Board of
Directors of Seylan Bank and to continue with the services of the
present CEO and all employees of Seylan Bank without interruption.
The Central Bank took control of Seylan Bank following the pledge
made by Ceylinco Consolidated Chairman Lalith Kotelawala to divest the
stake of Ceylinco Group in Seylan Bank to settle depositors of the
Golden Key Credit Card company.
The crisis hit the company when a large number of depositors
complained to the Group Chairman Kotelawala that their cheques were not
honoured by the Golden Key company.
Meanwhile, the top management of the Group also received several
complaints which led them to investigate while the depositors started
withdrawing money due to the experience with the Sakvithi scam and ‘word
of mouth’ information that Golden Key was facing financial difficulties.
According to sources Kotelawala will not desert the depositors who
have placed their trust in the company and instead will honour the
public at any cost. |
