Regulatory Alerts2014-02-17 | 02/17/550/0016/001Added · Updated
Definition 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.
CENTRAL BANK OF SRI LANKA
Bank Supervision Department
Ref: 02/17/550/0016/001
17 February 2014
To: The Chief Executive Officers of Licensed Commercial Banks
Dear Sir/Madam
Definition of Liquid Assets under Section 86 of the Banking Act No. 30 of 1988, as Amended
In terms of section 21 (1) and the definition of "liquid assets" in paragraph (g) of section 86 of the Banking Act, No. 30 of 1988, as amended, the Monetary Board has determined that Standing Deposit Facility balances held by Licensed Commercial Banks with the Central Bank of Sri Lanka are liquid assets.
- Licensed commercial banks shall report the eligible value of Standing Deposit Facility under code number 4.1.2.3.0.0 of the monthly web based return on Statutory Liquid Assets Ratio for Domestic Banking Unit (BSD-MF-04-LD).
Yours faithfully
(Mrs.) T M J Y P Fernando
Director of Bank Supervision
Level 6, No. 30, Janadhipathi Mawatha, Colombo 1
P. O. Box 590, Colombo 01, Sri Lanka.
94 11 2477100/659
94 11 2477711
banksup@cbsl.lk
www.cbsl.gov.lk
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