No Threat to the Banking System – Banking Industry Experts

Former Central Bank Deputy Governor and current chairman of the committee examining options for reviving bankrupt financial firms, Dharma Dheerasinghe, mocking rumors of threats against the banking sector, said he would not There was no threat to the banking and financial sector which is monitored and supervised by the Central Bank which, as guardian of the sector, ensures its financial stability.

Referring to a statement by a former finance minister in the early 1990s about the instability of the two state banks which proved otherwise, the former big banker said speculation would only lead to conclusions illogical and added that decisions should be based on solid evidence.

The banking sector is not threatened by the scarcity of the dollar. The legal currency of the sector is the local currency, he said. Dr WA Wijewardena, who is also a former Deputy Governor of the Central Bank, said: “I see no immediate threat to the stability of the state banks as they have a strong capital base and large inflows of deposits that help them overcome any pressing liquidity problems. . Their profit levels are more than enough to cover possible losses from specific trades. As such, I see no reason for the public to be concerned about the security of the deposits they have with these banks.

The banking sector watchdog said on Thursday that the Ministry of Finance and the Central Bank want to assure the public and all other stakeholders that the banking system is stable and that the operations of state banks are running smoothly, unlike the statements made elsewhere. .

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