Monetary Board decides to cancel The Finance license after multiple attempts to find investor fail CB decides to give relief to 135,000 or 94% of depositors Estimates 20 finance companies struggling to meet regulatory requirements No banks penalised for missing year-end interest target due to swift compliance CB says released full report on five completed forensic audits to Speaker Process to start sixth forensic audit still underway By Uditha Jayasinghe
A. Karunaratne told reporters that the license of
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Karunaratne Despite the initial announcement of license cancellation in October by theCentral Bank , TFC had received approval to publish new EOIs to seek an investor who could investRs. 25 billion to resuscitate the company.
But these had been unsuccessful, with the
To resurrect the company there are a few options one is either we need to see a new investor, or there should be injection of funds from the Government or
So therefore our option is to go ahead and cancel the license. Right now we are looking to see whether the Government is willing to consider any other options, but if not we have to go ahead and cancel the license.
" The Deputy Governor emphasised that cancelling the license will be beneficial for many depositors, who have been unable to recoup their money for a long period of time. "There are also a large number of depositors who are regularly requesting their funds.
When you look at the total picture of The Finance, altogether we have 145,000 depositors, out of that 134,000 depositors have funds less than
" The monetary institution is expected to inform the
Measures were taken to repay TKS depositors using the depositors' insurance scheme. Karunaratne also acknowledged that of the 42 licensed finance companies and six leasing companies currently operating in
He also said while finance companies had requested to be part of the moratorium announced by the Government, the nature of their businesses made it challenging to include them in the policy. Responding to questions, Senior Deputy Governor Dr.
If banks do not comply for a significant period of time, depending on the violation, we decide whether to take action. I think naming and shaming works.
The response from banks was very swift." He also said the
The financial bid was opened on Friday, after which we have to do price negotiations, and then inform relevant authorities on the current position because it is linked to the court decision as well. Before we take any decision, we need to inform the court as well.
We are following procedure," Deputy
© Pakistan Press International, source