Satisfactory progress has been made on the consolidation of banking and non-banking sectors of the country, Central Bank in a recent statement said.

The statement said that in keeping with the Central Bank’s request, banks and non-bank financial institutions (NBFIs) agreed to submit their preliminary proposals regarding the consolidation effort by 31March 2014.

To expedite the process, the Central Bank has appointed a special unit headed by an Assistant Governor.

At a seminar held on January 17, the Central Bank explained the key components of the consolidation plan to the Chairmen and Chief Executive Officers of banks and 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.

Subsequently, Central Bank 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 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 in order to ensure the objectivity and integrity of the process.

Furthermore, the monetary authority also requested all banks, NBFIs and others who are involved in the process to continue a close dialogue with them and obtain guidance if the need arises.

A meeting was also held with key office bearers of the Ceylon Bank Employees’ Union, where all clarifications were provided by the Central Bank Governor and other senior officials.

The Central Bank also held discussions with leading consulting firms with regard to their provision of consultancy services in respect of valuations, accounting and other services. These meetings helped to provide a clear understanding of the process which will help all stakeholders to move forward with clarity and certainty.

In the meantime, the Central Bank said the consolidation process will not, in any way, affect the general public’s current transactions and deposits with the banks and finance companies, with whom they are presently transacting.