COVID-19 – FINANCE NEWS

Class of COVID-19: Next generation of bankers fear for future

2May

By AuthorNo Comments

Banking and Insurance, Equity Market, Finance and Leasing, Fintech, FX Market, International Business

Class of COVID-19: Next generation of bankers fear for future

(Reuters) : It wasn’t the introduction to high finance that Adi Patel had once anticipated. The stage fright of walking into the imposing offices of a $607 billion asset manager in the heart of a historic financial district? Pandemic era: a five-day induction on Microsoft Teams. The rip-roaring intensity of the trading floor replete with sharp-suited money managers? Not quite - hunched over a laptop with comfy clothes in a flat-share. Client lunches, and perhaps swapping stories after work with fellow graduates embarking on first steps in finance? Not likely. The pandemic has put paid to many initial expectations of the financial industry's Class of COVID-19. That group includes new recruits at finance firms around the world, such as 22-year-old graduate analyst Patel and two ...

Licensed Banks to come under requirements to implement Recovery plans

4Jan

By AuthorNo Comments

Banking and Insurance, Business, Finance and Leasing

Licensed Banks to come under requirements to implement Recovery plans

Sri Lanka's Licensed Banks come under requirements to implement Recovery plans in order to strengthen crisis preparedness and to enhance their ability to respond effectively to adverse scenarios with the expected rise in sour loans when COVID-19 related moratoriums are expired, the Central Bank (CB) announced today. "Directions will be issued in due course, providing necessary guidelines. The Central Bank will continue to adapt its supervisory approaches to suit the new normal," Central Bank (CB), Governor, Professor W D Lakshman said. He revealed this while presenting "the Road Map: Monetary and Financial Sector Policies for 2021 and Beyond." Further, he also revealed that the CB would introduce a regulatory framework for technology risk management and resilience of license...

Sri Lanka’s Banks are unlikly to return to Pre-covid proftiability levels in 2021

18Dec

By AuthorNo Comments

Banking and Insurance, Business, Finance and Leasing, Investments

Sri Lanka’s Banks are unlikly to return to Pre-covid proftiability levels in 2021

Sri Lanka's Banks are unlikly to return to Pre-covid proftiability levels next year, Fitch Ratings said in a special report. "We expect this trend to continue in to 2021, albeit at a slower pace. Deteriorating asset quality and the associated higher credit costs are expected to keep banks' profitability lower in 2021 than pre-2019 levels, despite improvement from 2020 profitability," the Rating Agency said. It expects that sluggish economic activity, external and domestic vulnerabilities, muted private credit growth and the sovereign's weakened credit profile to pose significant downside risks to the operating environment for Sri Lankan banks. The rating Agency lowered its assessment of the operating environment score for Sri Lankan banks to 'ccc' with negative outlook from 'b-' ...

Financial Regulators to face dilemma once the withdrawal from Covid-19 measures begins

14Dec

By AuthorNo Comments

Banking and Insurance, Economy, International Business, Opinion

Financial Regulators to face dilemma once the withdrawal from Covid-19 measures begins

The Financial Regulators across the World will face a dilemma once the withdrawal from Covid-19 measures begins as to how and when to exit from regulatory relief measures in balancing the benefits of economic relief with financial stability considerations. "The challenge will be how and when to exit from regulatory relief measures. In terms of timing, authorities need to steer a course between Scylla and Charybdis. Acting too early may remove much needed credit to support economic growth. Waiting too long may delay necessary resource reallocation and put additional long-run pressure on the financial sector as the solvency phase of the crisis could expose any depletion of loss-absorbing resources, potentially undermining confidence in the post-crisis regulatory regime and its abilit...

Sri Lanka’s banks became more flexible in lending in 3Q

7Dec

By AuthorNo Comments

Banking and Insurance, Business, Economy

Sri Lanka’s banks became more flexible in lending in 3Q

Sri Lanka's banking sector was more open to lending for borrowers in retail, corporate, and SME categories in the third quarter of the year amidst improved risk perception and improved liquidityposition. However, due to the impacts from the second wave of COVID-19 on the credit supply, the Central Bank (CB) expects the banks to become more conservative in lending in the current (Q4) quarter. In the third quarter, the demand for loans was significantly up across all categories driven by the sharp reduction in interest rates. "Loans demanded by the corporate category for the purposes of working capital and debt restructuring showed an increase in 2020 Q3," CB said. Meanwhile, the CB expects the demand for loans to increase further in Q4 with the optimism prevailed on the re...

First Capital Research predicts a 50% chance for a policy rate cut

23Nov

By AuthorNo Comments

Banking and Insurance, Business, Economy, Finance and Leasing

First Capital Research predicts a 50% chance for a policy rate cut

First Capital Research predicted a 50% chance for a policy rate cut by the Central Bank (CB) at its upcoming Monetary Policy Review Meeting this month. "We believe that CB will maintain same policy stance in this monetary policy review, but given the concerns around economic growth, CBSL is likely to retain the monetary policy stance at “accommodative”, Colombo-based leading Research House, First Capital stated in its Pre-Policy Analysis Report. Arguments against further relaxation in monetary policy Improvement in high-frequency indicators with surplus liquidity in the system As a response to the measures taken by the Govt, private sector credit has improved to LKR 87.4Bn in Sep while the market liquidity has reached LKR 140.0Bn by 13th Nov indicating that there is surplus l...

CHEC Port City Says no Colombo Port City Employees tested positive for COVID-19

11Nov

By AuthorNo Comments

Business, Chinese, Economy, International Business

CHEC Port City Says no Colombo Port City Employees tested positive for COVID-19

The project company of the Port City, CHEC Port City Colombo today stressed any employees at the Port City site has been tested positive for COVID-19 while clarifying that the two local workers and four Chinese who tested positive for COVID-19 were employed at a different project in Kotahena(Colombo 13). "This accommodation facility was only used by the workers employed for that project and not employed or engaged in any interaction with Port City Colombo site or its employees," the company said. Following the confirmation of the cases, the company noted that the mentioned accommodation was put under lockdown, and movement in and out of the site was restricted. It further stated that since Port City Colombo resumed day to day operations, all Port City staffs have gone through PC...