CB says NBFI sector regulatory capital boosted by its consolidation masterplan

The Central Bank yesterday said the country’s non-bank financial institutions (NBFI) sector has seen “significant improvement” in terms of regulatory capital requirements, as a result of its Masterplan for Consolidation of Non-Bank Financial Institutions.

According to a Central Bank statement, nine finance companies have introduced fresh capital to the tune of Rs.12.56 billion to meet the regulatory capital requirements.

Those 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 had obtained preliminary approvals.

Those companies are Assetline Leasing Co. Ltd—acquisition of finance business licence of Kanrich Finance Ltd and settlement of its deposits, LB Fiannce—acquisition and subsequent amalgamation of Multi Finance PLC, SMB Leasing PLC—acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits, Commercial Leasing & Finance PLC—acquisition and subsequent amalgamation of Sinhaputhra Finance PLC, HNB Finance PLC—acquisition and subsequent amalgamation of Prime Finance PLC and LOLC Finance PLC—amalgamation of Commercial Leasing & Finance PLC.

“As a result of the above developments, the non-bank financial institutions sector has witnessed a significant improvement in compliance with the regulatory capital requirements and has recorded the lowest non-compliance levels during recent times,” a Central Bank statement said.