Regulatory Alerts2019-12-19 | Banking Act Directions No. 7 of 2019Amendments to the Regulatory Framework on Valuation of Immovable Properties of Licensed Banks
The Central Bank of Sri Lanka has issued amendments to its regulatory framework governing the valuation of immovable property held by licensed commercial and specialized banks. The updated directives establish stricter eligibility criteria for internal and external valuers, mandating specific professional memberships and experience levels, while defining capital-based thresholds for selecting internal versus external valuation reports. Furthermore, the framework standardizes valuation frequencies based on loan performance and property type, mandates board-approved revaluation policies for fair value adjustments, and restricts the inclusion of valuation gains to Tier 2 capital once every three years.
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