CB takes ‘regulatory action’ against The Finance | Sunday Observer

CB takes ‘regulatory action’ against The Finance

The Monetary Board of the Central Bank of Sri Lanka (CB) at its meeting on February 8, having considered the weak financial performances of The Finance Company, decided to take regulatory action, as temporary measures, under the provisions of FBA, from February 15, 2019 to safeguard the interests of the depositors and other stakeholders of the company.

Proposed regulatory measures include suspension of accepting new deposits, restrictions on withdrawal of deposits and restricting disbursement of loans and advances to facilitate the restructuring process of TFC. To facilitate the restructuring process, a panel of experts in banking and finance has been appointed by the CBSL. The company will negotiate and finalise the proposals of prospective investors and the CBSL will facilitate TFC to proceed with suitable investors as per the applicable laws and regulations. All borrowers of the company are advised to pay their dues. These measures will assist potential investors of TFC and to ensure the safety and soundness of the financial system.

The CBSL is also taking measures to monitor the operations of the company to protect the rights of the depositors. Interest due for deposits will be paid to the depositors as per CBSL directions. The restructuring process will improve the cash flows and facilitate investors and revival of the company. The deposit insurance and liquidity support scheme will safeguard the interest of all depositors, to a maximum of Rs. 600,000 per depositor, which will cover 93 percent of the depositors in full.

The depositors can contact the Department of Supervision on Non-Bank Financial Institutions of the Central Bank through 0112 477 573, 0112 477 229, 0112 477 504 or [email protected] for further details.