Master Plan on Consolidation of the Financial Sector

Gaja · 1 Master Plan on Consolidation of the Financial Sector Fri Jan 17, 2014 10:14 pm

Gaja

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/speech_20140117e.pdf

Antonym

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Gaja wrote:http://www.cbsl.gov.lk/pics_n_docs/latest_news/speech_20140117e.pdf

The Master Plan looks impressive. I hope its implementation goes smoothly.

I was also hoping that CBSL would name the NBFIs and smaller banks that need to get merged or acquired... Which of them are the most attractive takeover targets at current prices?

Gaja

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Antonym wrote:

Gaja wrote:http://www.cbsl.gov.lk/pics_n_docs/latest_news/speech_20140117e.pdf

The Master Plan looks impressive. I hope its implementation goes smoothly.

I was also hoping that CBSL would name the NBFIs and smaller banks that need to get merged or acquired... Which of them are the most attractive takeover targets at current prices?

Yes that was am also looking for, specially the group B NBFI name

jonta999

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Gaja wrote:

Antonym wrote:

Gaja wrote:http://www.cbsl.gov.lk/pics_n_docs/latest_news/speech_20140117e.pdf

The Master Plan looks impressive. I hope its implementation goes smoothly.

I was also hoping that CBSL would name the NBFIs and smaller banks that need to get merged or acquired... Which of them are the most attractive takeover targets at current prices?

Yes that was am also looking for, specially the group B NBFI name

What are the Guesses?

Redbulls · 5 Finance plan has “hidden agenda,” says Harsha Sat Jan 18, 2014 3:03 am

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UNP MP Dr. Harsha de Silva yesterday slammed the new Central Bank Master Plan on Consolidation of the Finance Sector as containing a “hidden agenda”.

Dr. De Silva told the Weekend FT that the sudden focus of the Central Bank in urging the sector to consolidate by mergers and takeovers should be seen in the light of chequered reputations of certain finance companies that were involved in controversial deals as that between The Finance Company and the National Savings Bank (NSB).

“This sudden surge of activity is suspicious. For the longest time the Central Bank kept denying there were any problems, they even ran full page ads on newspapers saying ‘politically motivated economic hitmen’ were spreading false stories to destabilise the economy. That is what they said. Now suddenly everything has changed. They have sent letters to chairmen of finance companies summoning them to a special meeting. The letter was sent on Thursday (16); their presence is ‘required’ on Sunday (19). Why the sudden change of heart?”

He also insisted that under the new measures introduced by the Central Bank, certain financially unsound finance companies could be taken over by State banks.

“I have heard that they are trying to flog The Finance Company to a State bank. This was the same company that overpriced its shares to Rs. 50 and sold it to NSB. It was I who protested and as they say the rest is history. Today the share is less than Rs.10. The losses of this company are mindboggling. They have not met any regulatory requirements of the Central Bank. Losses have grown over the last few years even when it was under the Central Bank restructuring process, even with handpicked directors. Now they are saying it will now be put under a State bank,” he charged.

He alleged that even though the Central Bank insists the finance sector is “hunky-dory,” there are many companies unable to pay their depositors.

“Who are they trying to protect? Are they trying to protect the owners of The Finance Company by bailing them out? So who are they trying to protect? Questions are going to arise.”

Dr. De Silva went on to say that troubled finance companies are headed by people with strong links to the Government, raising more questions over the Central Bank’s newly-unveiled plans.

“This sudden summoning of entire boards is highly questionable. Some financially unsound finance companies continue to take deposits and even floated an IPO. The Central Bank is aware of these issues.

The Central Bank cannot turn a blind eye to these problems. They are answerable to thousands of depositors who cannot get their money back,” he stressed.
http://www.ft.lk/2014/01/18/finance-plan-has-hidden-agenda-says-harsha/

D.G.Dayaratne

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I think this is not a proposal come from industry or real bankers

as far as i know no such academic discussion

There may be a hidden agenda

This may be another harmful intervention by govt to financial system

Last edited by D.G.Dayaratne on Sat Jan 18, 2014 8:35 am; edited 1 time in total (Reason for editing : typing error)

Redbulls

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D.G.Dayaratne wrote:I think this is not a proposal come from industry or real bankers

as far as i know no such academic discussion

There may be a hidden agenda

This may be another harmful intervention by govt to financial system

Intervention to bail out their supporters, (may be some of your friends) wait and see some famous court cases and rulings in the past will go under the carpet.
Wonder of Asia.

Rocky

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Some absurd plans!

Do you think the other FINCO's are going to let be merged with Dud companies?

You gotta be joking!
They will get out of the finance business and get into other businesses without losing their shirts.

Leon

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To my mind their this is a good move. We have so many banks and NBFI's figiting for a very small market. By making them strong those companies will be able to look for other markets. But the way CB is doing this is a bit questionable. There should be a good dialog among all stake holders before jumping to such water.

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Master Plan on Consolidation of the Financial Sector

1 Master Plan on Consolidation of the Financial Sector Fri Jan 17, 2014 10:14 pm

Gaja

2 Re: Master Plan on Consolidation of the Financial Sector Fri Jan 17, 2014 10:51 pm

Antonym

3 Re: Master Plan on Consolidation of the Financial Sector Fri Jan 17, 2014 10:53 pm

Gaja

4 Re: Master Plan on Consolidation of the Financial Sector Fri Jan 17, 2014 11:45 pm

jonta999

5 Finance plan has “hidden agenda,” says Harsha Sat Jan 18, 2014 3:03 am

Redbulls

6 Re: Master Plan on Consolidation of the Financial Sector Sat Jan 18, 2014 8:30 am

D.G.Dayaratne

7 Re: Master Plan on Consolidation of the Financial Sector Sat Jan 18, 2014 10:51 am

Redbulls

8 Re: Master Plan on Consolidation of the Financial Sector Sat Jan 18, 2014 11:46 am

Rocky

9 Re: Master Plan on Consolidation of the Financial Sector Sun Jan 19, 2014 11:09 pm

Leon

10 Re: Master Plan on Consolidation of the Financial Sector

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