The Central Bank said yesterday that the country’s non-banking financial institutions (NBFI) sector had seen a “significant improvement” in terms of regulatory capital requirements, following its master plan for the consolidation of non-banking financial institutions. banking.
According to a statement from the Central Bank, nine finance companies introduced new capital to the tune of Rs 12.56 billion to meet regulatory capital requirements.
These companies are Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC,
Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd.
In addition, 12 companies have submitted acquisition/consolidation plans to the Central Bank and obtained preliminary approvals.
These companies are Assetline Leasing Co. Ltd – acquisition of the finance business license of Kanrich Finance Ltd and settlement of its deposits, LB Fiannce – acquisition and subsequent merger of Multi Finance PLC, SMB Leasing PLC – acquisition of the finance business license of Swarnamahal Financial Services PLC and settlement of its deposits, Commercial Leasing & Finance PLC—acquisition and subsequent merger of Sinhaputhra Finance PLC, HNB Finance PLC—acquisition and subsequent merger of Prime Finance PLC and LOLC Finance PLC—merger of Commercial Leasing & Finance PLC.
“Due to the above developments, the non-banking financial institutions sector has seen significant improvement in compliance with regulatory capital requirements and recorded the lowest levels of non-compliance in recent times,” says a statement from the Central Bank.