FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post

Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Shares to Buy
by Bakkabwoi Yesterday at 11:12 pm

» EXPOLANKA HOLDINGS PLC Interim Financial Statements quarter ended 30th June 2021
by Accountant Yesterday at 10:09 pm

» Successful investment strategies require an understanding of the forces of stock market nature, and disciplined rules of portfolio management.
by Asoka Samarakone Yesterday at 9:12 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Niwa Yesterday at 8:53 pm

» Directors' Dealings today
by SAGA Yesterday at 6:02 pm

» Top Foreign Trading today
by SAGA Yesterday at 5:59 pm

» CHEVRON LUBRICANTS LANKA PLC (LLUB.N0000)
by Antonym Yesterday at 5:37 pm

» Boga unusual Collection....
by Wickyz Fri Jul 30, 2021 1:14 pm

» MILLENNIUM HOUSING DEVELOPERS PLC (MHDL.N0000)
by jehan008 Fri Jul 30, 2021 1:11 pm

» Sri Lanka FOB prices for black tea highest in the world
by samaritan Fri Jul 30, 2021 12:18 pm

» DPL Take over
by Vishwanarth Fri Jul 30, 2021 12:12 pm

» HVA FOODS PLC (HVA.N0000)
by samaritan Fri Jul 30, 2021 11:02 am

» INDUSTRIAL ASPHALTS (CEYLON) PLC (ASPH.N0000)
by dayandacool Fri Jul 30, 2021 10:09 am

» CITIZENS DEVELOPMENT BUSINESS FINANCE PLC(CDB.N0000)
by engineer Fri Jul 30, 2021 7:06 am

» RENUKA CAPITAL PLC . KZOO.N
by Pbv Fri Jul 30, 2021 12:22 am

» What will happen to AMF¿??????
by Tissa Thu Jul 29, 2021 11:46 pm

» Expert view on AMF??
by Tissa Thu Jul 29, 2021 10:12 pm

» Sell EXPO Buy EDEN sentiment changed to Exit EXPO Enter EDEN
by Bakkabwoi Thu Jul 29, 2021 8:57 pm

» What are the short term profit stocks you are planning to buy on this Monday? (Only honest ppl please)
by Hope123 Thu Jul 29, 2021 7:04 pm

» Discussion on mechanism to aid investors, Conducted BY Hon Finance Minister
by D.G.Dayaratne Thu Jul 29, 2021 6:57 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Credit growth falling significantly

Credit growth falling significantly

Go down  Message [Page 1 of 1]

1Credit growth falling significantly Empty Credit growth falling significantly Tue Aug 14, 2012 8:28 am

Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
The painful adjustments to contain a balance of payments crisis have brought about further improvements with banking sector credit growth falling significantly along with Central Bank loans to the government, latest data released by the Monetary Authority showed.

With interest rates rising, since end December 2011 private sector credit from the banking sector grew 12 percent as at end June 2012, well below the Central Bank imposed limit of 18 percent, to Rs. 2 trillion, up 34.6 percent from a year earlier.

Government borrowings from the domestic banking sector grew 18.5 percent from December to end June to Rs. 560.3 billion, down 38.2 percent from a year earlier. Borrowings from the Central Bank grew 23.4 percent during the six month period to Rs. 324.2 billion as at end June 2012, down 33 percent from a year earlier.

For the first six months of this year, the domestic banking sector has generated new loans amounting to Rs. 220.1 billion to the private sector. New loans generated from January 2011 to January 2012 amounted to Rs. 506 billion.

The Central Bank issued fresh loans to the government amounting to Rs. 61.5 billion during this period with repayments amounting to Rs. 22.2 billion in May and Rs. 5.3 billion in June. For one year ended January 2012, the Central Bank issued new loans amounting to Rs. 197 billion to the government.

Government borrowings from the banking sector generated new loans amounting to Rs. 87.5 billion, during January to June 2012 with a settlement of Rs. 5.7 billion being made in June. Last year, the domestic banking sector lent Rs. 159.8 billion to the government.

Higher than expected credit growth last year fuelled a balance of payments crisis with the Central Bank refusing to adjust the exchange rate or interest rates accordingly.

In February this year, authorities were forced to adopt a slew of policy reversals to tackle the balance of payments problem.

Policy interest rates have been raised and a more flexible exchange rate policy is now being followed. The Central Bank also capped an 18 percent cap on banking sector credit growth. Fuel and electricity prices were revised upwards to reflect global market conditions.

These measures have been commended by economists, who point out that the burden on the public could have been much less had these adjustments been taken much earlier.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=59132

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum