Regulatory Alerts2015-10-29 | Banking Act Directions No. 3 of 2015Loan to Value Ratio for Motor Vehicle Loans and Advances
The Central Bank of Sri Lanka issued Banking Act Direction No. 03 of 2015 to mandate a standardized loan-to-value ratio for all motor vehicle loans and advances. This directive, enacted under Sections 46(1) and 76J(1) of the Banking Act, replaces the prior September 2015 regulation and becomes effective on 1 December 2015. Financial institutions must apply the prescribed valuation limits to cap credit risk and maintain prudent lending standards across motor vehicle financing portfolios.
[Logo of the Central Bank of Sri Lanka]
MONETARY BOARD CENTRAL BANK OF SRI LANKA
29 October 2015 | BANKING ACT DIRECTIONS | No. 03 of 2015
LOAN TO VALUE RATIO FOR LOANS AND ADVANCES IN RESPECT OF MOTOR VEHICLES
Issued under Sections 46(1) and 76J(1) of the Banking Act, No. 30 of 1988, as amended.
Banking Act Direction No. 02 of 2015 dated 14 September 2015 on the above subject shall come in to force with effect from 01 December 2015.
(Signature)
Arjuna Mahendran Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka