Regulatory Alerts2014-02-17 | 02/17/550/0016/001Definition of Liquid Assets - LCBs
The Central Bank of Sri Lanka has determined that Standing Deposit Facility balances held by Licensed Commercial Banks are classified as liquid assets under Section 86 of the Banking Act. This directive was issued by the Director of Bank Supervision to formally recognize these balances as eligible for statutory liquidity requirements. Licensed commercial banks are required to report the eligible value of these facilities under code number 4.1.2.3.0.0 in their monthly Statutory Liquid Assets Ratio returns.
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