Regulatory Alerts2019-12-20 | Banking Act Directions No. 11 of 2019Amendments to Directions on Capital Requirements under Basel III for Licensed Commercial Banks and Licensed Specialized Banks
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 11 of 2019 to amend capital adequacy rules for licensed commercial and specialized banks. The updated directions mandate minimum capital ratios of 7.0 percent for Common Equity Tier 1, 8.5 percent for Total Tier I, and 12.5 percent for the Total Capital Ratio, all inclusive of the capital conservation buffer. Additionally, Domestic Systemically Important Banks must maintain higher loss absorbency buffers that increase these baseline ratios according to Monetary Board determinations.
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