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.

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


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Daily Foreign Transactions
by Pradeep90 Today at 6:56 pm

» Dipped Products, Haycarb well-positioned to benefit
by MarketWch Today at 5:11 pm

» B P P L HOLDINGS PLC (BPPL.N0000)
by Beta1 Today at 4:22 pm

» DIPD/HAYC/HAYL
by Mr. X Today at 3:44 pm

» GLAS will be winner with Super Gain.
by jason12 Today at 2:08 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Today at 12:18 pm

» WIND FORCE WIND
by stockchaser Today at 11:17 am

» What will happen tomorrow?
by madukp Today at 10:53 am

» Growing Fear
by Wickyz Today at 9:31 am

» ALUMEX PLC (ALUM.N0000)
by Bakkabwoi Yesterday at 8:24 pm

» First capital holdings CFVF.N0000
by invest thinker Yesterday at 6:25 pm

» The market is not out to “get” you but is just flowing along, and your position just happens to be carried along with it.
by dayandacool Yesterday at 4:49 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by reyaz Yesterday at 4:15 pm

» KGAL - THE SLEEPING GIANT
by THASSIM Yesterday at 2:21 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by Wickyz Tue Apr 20, 2021 12:54 pm

» LDEV LDEV LDEV
by Eranga87 Tue Apr 20, 2021 10:27 am

» No trader can flee from making a mistake. It’s just that you need to be careful about not repeating your mistakes.
by Mithooshan Tue Apr 20, 2021 7:42 am

» SWISSTEK (CEYLON) PLC (PARQ.N0000)
by Chithi Mon Apr 19, 2021 7:45 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Jana Mon Apr 19, 2021 6:14 pm

» US dollar trading lower, euro near new high
by target1 Mon Apr 19, 2021 1:38 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » 12 Sri Lanka banks, 57 finance companies wrap up consolidation plans: Central Bank

12 Sri Lanka banks, 57 finance companies wrap up consolidation plans: Central Bank

Go down  Message [Page 1 of 1]

Sstar

Sstar
Vice President - Equity Analytics
Vice President - Equity Analytics
Sri Lanka's regulator driven consolidation is on track with 12 banks and 57 non-bank lenders submitting plans for mergers and recapitalization, the Central Bank said.

Another 19 non-bank lenders have completed internal processes to allow them to submit the plans, the regulator said. Already 19 proposals have been approved.

Consultants have completed Information Memoranda, Due Diligence Reports and Valuation Reports of 38 NBFIs which have been shared with 40 prospective partners.

Three micro-financiers have been given the nod.

The full statement is reproduced below:-

Financial Sectorn Consolidation Update - July 2014

The financial sector consolidation process made significant progress during July 2014.

Consolidation plans submitted to the Central Bank: Proposed consolidation/merger/acquisition plans were submitted by banks and finance and leasing companies (NBFIs), and those were reviewed and evaluated by the Central Bank. The proposed plans included acquisitions with timelines and price indications, mergers between NBFIs, envisaged infusions of capital by present shareholders, and infusions of capital by new investors.

Pursuant to the submission of such plans, the Central Bank management held meetinngs with members of the Boards of Directors and senior management of banks and NBFIs, with some of those meetings being with the intended merger/acquisition companies, on a joint basis. In the case of banks and NBFIs where mergers were agreed, discussions also covered the timelines for completion of the transactions and the way forward in the post integration period.

The Central Bank also granted in-principle approval for several consolidation arrangements.
Overall, the progress so far was as follows:-

*Panel of Audit Firms completed Information Memoranda, Due Diligence Reports and Valuation Reports of 38 NBFIs.

* The Central Bank shared these Reports with 40 prospective consolidation partners after entering into Non-Disclosure Agreements.

* 57 NBFIs and 12 banks submitted plans for mergers/acquisitions and infusion of capital.

* The Monetary Board approved 19 consolidation proposals, in-principle, and the respective companies were proceeding with the merger/acquisition processes.

* 19 NBFIs completed the internal processes in order to submit their proposals for the approval of the Central Bank.

Continuation of transaction management: The Panel of Audit Firms continued to assist in transaction management, by advising Banks and NBFIs on transactions as well as re. the smooth transitions after consolidation.

Price guidance for consolidation process: The Central Bank provided a price guidance for the proposed acquisitions/mergers on the basis of valuations carried out by the Audit Firms.

This was done in order to facilitate the conclusion of transactions at reasonable values, and thereby prevent the creation of possible price bubbles, which could be unhealthy for financial system stability in the future.

Micro finance sector: Three institutions have so far been given in-principle approval to undertake micro-finance business with improved capital, widened asset bases and satisfactory governance structures and practices.

On-going consolidation activities: Mergers of DFCC Bank, DFCC Vardhana Bank PLC and the National Development Bank PLC, as well as Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Ltd., and MCSL Financial Services Ltd., continued to progress during the month.

Amendments to the respective legislation and approvals necessary for successful completion of the transactions were being attended, while the services of expert firms were availed of, to ensure smooth transition. The work relating to the acquisitions of Lisvin Investments Ltd. by Assetline Leasing Company Ltd., and Asian Finance Ltd. by TKS Finance Ltd. also progressed.

Announcements of new transactions: Certain banks and NBFIs made public announcements of agreed consolidation arrangements. These included the Commercial Bank of Ceylon PLC with Indra Finance Ltd., and Deshodaya Development Finance Company Ltd. with George Steuart Finance PLC.

Cancellation of leasing business licence: The licence granted to Koshiba Leasing Co. Ltd., to engage in leasing business was cancelled by the Central Bank at the request of the company, since the company did not wish to continue its operations under the consolidation plan.

Inclusion of Central Investments and Finance PLC (CIFL) within the consolidation process: During the month, the Court of Appeal dismissed the Stay Order issued against the CIFL re-structuring process. Consequently, the company has now been included within the master plan for consolidation, and the necessary action is due to be taken in the coming months to restructure the company, in accordance with a new plan that has to be developed.

Tax incentives: The Guidelines on Taxation in terms of the Inland Revenue (Amendment) Act No. 8 of 2014 and Value Added Tax (Amendment) Act No. 7 of 2014 on the tax incentives to support the consolidation process were approved by the Monetary Board, and are due to be issued on receipt of the concurrence of the Ministry of Finance and Planning.

IMF reaction to the consolidation process: The International Monetary Fund in its recently concluded Article IV Mission Report has expressed positive sentiment regarding the ongoing financial sector consolidation, highlighting that the programme offers a potential opportunity to increase the resilience of the system and contribute to more effective oversight.

VALUEPICK

VALUEPICK
Expert
Expert
Banking consolidation is a good move.

Back to top  Message [Page 1 of 1]

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