Former Deputy Governor of the Central Bank and current Chairman of the Committee to examine revival options for failed finance firms, Dharma Dheerasinghe scoffing rumours of threats to the banking sector said there is no threat whatsoever to the banking and finance sector which is monitored and supervised by the Central Bank which as the guardian of the sector ensures its financial stability.
Referring to a statement by a former Finance Minister in the early 1990s on the instability of the two state banks which proved otherwise, the former top banker said speculation will only lead to illogical conclusions and added that decisions should be based on sound evidence.
The banking sector is not threatened by the dollar scarcity. The legal tender of the sector is the local currency, he said. Dr. W.A. Wijewardena, who is also a former Central Bank Deputy Governor said, “I do not see any immediate threat to the stability of the state banks because they have a solid capital base and strong deposit inflows helping them to overcome any urgent liquidity issue. Their profit levels are more than sufficient to meet any losses arising from specific transactions. As such, I do not see any reason for the public to be worried about the safety of the deposits they have with these banks.”
The banking sector guardian said on Thursday the Ministry of Finance and the Central Bank wish to assure the public and all other stakeholders that the banking system is stable, and that the operations of the State Banks are being carried out smoothly, contrary to statements made otherwise.