Regulatory Alerts2024-07-19 | Banking Act Direction No. 04 of 2024Amendments to Basel III Capital Requirements Directions for Licensed Commercial and Specialised Banks
The Central Bank of Sri Lanka has amended its Basel III capital requirements directions to update risk-weight calculations and institutional classifications for licensed commercial and specialised banks. The revisions introduce a new web-based return code for exposures guaranteed by the National Credit Guarantee Institution Limited and replace the indicative list of financial institutions with an expanded, legally specified roster. Furthermore, the updated guidelines assign specific risk weights to credit guarantees, mandating zero percent for government-backed loans, fifty percent for SLECIC and approved guarantees, and twenty percent for NCGIL-covered exposures.
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