Looking forward to a strong and dynamic banking sector, the governor said capital ratios are expected to improve with the infusion of capital to meet the enhanced minimum capital requirements for banks by end 2020.He said further that CBSL as the regulator understands that crisis preparedness and resilience of banks need to be further strengthened. Accordingly, banks will be required to implement recovery plans in order to minimise the adverse impact on troubled banks and their possible spillover effects to the financial system.

Further, Accounting Standards and existing Banking Act Directions will be reviewed and amended where necessary, with a view to strengthening prudential requirements on credit, market, liquidity, operational and other risks in line with international regulatory standards and best practices.“In order to address technology risk, changes will be introduced in the regulatory and supervisory framework with respect to information technology and security of banks, in line with international standards and best practices.” the governor said.He also noted that the proposed regulations will prompt banks to upgrade and strengthen their information systems and related technological platforms, enabling improved risk management.