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Sri Lanka's central bank suspends PABC primary dealer arm

Aug 15, 2017 11:12 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka's central bank has suspended the primary dealer arm of Pan Asia Banking Corporation for six months from August 15.

"This regulatory action is based on the findings of an investigation carried out by the Central Bank related to PABC’s transactions with Perpetual Treasuries Ltd in the government securities market," the central bank said.

PABC can continue to carry out banking activities, the regulator said. The suspension applied to PABC's access to the primary market in government bonds.

The central bank has already suspended Perpetual Treasuries Plc.

The full statement is reproduced below:

Regulatory Action on a Primary Dealer - Pan Asia Banking Corporation PLC

The Monetary Board of the Central Bank of Sri Lanka on 14th August 2017, acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to suspend business activities of a Primary Dealer of Pan Asia Banking Corporation PLC (PABC) for a period of six months with effect from 10.00 a.m. on 15th August2017.

This regulatory action is based on the findings of an investigation carried out by the Central Bank related to PABC’s transactions with Perpetual Treasuries Ltd in the government securities market.

The Central Bank of Sri Lanka also wishes to inform the general public that the above regulatory action does not in any way affect PABC’s ability to carry on banking activities set out in Schedule II of the Banking Act, No. 30 of 1988 as a Licensed Commercial Bank. Accordingly, PABC may continue to deal in government securities to the extent permitted under schedule II of the Banking Act.

Action will also be taken by the Central Bank to safeguard the interests of the customers and counterparties of PABC in the government securities market, in an orderly manner.

The Central Bank wishes to emphasize that this regulatory action restricts PABC’s access to the primary auctions for government securities. It does not affect any of the other activities/services of PABC.


 

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