Nations’ bankers urged to see beyond property-backed lending

The Governor of the Central Bank of Sri Lanka Professor W.D. Lakshman recently urged the country’s bankers to take a different approach by recognising the ability of customers’ projects to repay the loans over the collateral they can offer as security for loans.

The Governor made this remark while speaking as chief guest at an event where Sri Lanka Banks’ Association launched their new website.

“I hope the banking sector will innovate to actively facilitate economic revival and sustainable domestic development.”

“Among needed innovations, from the point of view of promoting domestic economic and business activities, a rethinking of the current collateral-based lending culture of the banks and looking for alternative business and growth friendly project-based lending practices are highly needed. I hope SLBA will take a leadership role in this process of innovation.”

“The Central Bank of Sri Lanka recognises that the contribution and thought leadership provided by SLBA representing the collective effort of the banking industry to preserve the resilience and stability of the sector while spearheading innovation such as sustainable finance initiatives to take the Sri Lankan banking and financial sector to greater heights.”

“We appreciate the efforts of SLBA in promoting consultation within the banking industry and in maintaining a continuous dialogue with the Central Bank and other stakeholders. In this regard, the website launched will mark an important milestone for SLBA as well as for the banking sector,” the Governor said.

The overarching goal of the SLBA is to help banks work for the good of the people, by supporting industry participants and regulators in maintaining the overall stability of the monetary and financial system, ensuring economic security.

The new website is expected to be a catalyst for acceleration of such efforts by enhancing the SLBA’s ability to disseminate information and drive multi-stakeholder discussion on topics of importance.

The SLBA is the industry association for the Sri Lankan banking sector with over 30-member Banks operating in Sri Lanka, and in several other jurisdictions across the world.

The revamped web-site www.slba.lk is now accessible to the public.