01 Introduction to Banking Industry in Sri Lanka

 01 Banking as an Industry

The banking industry includes system of financial institutions which enable people to save,

 store and use their money  in a secure way. Banks collect surplus money from the sources

 and dispatch them to deficit channels by collecting deposits and granting loans.



 There are various types of banks.

Commercial Bank

A commercial bank is an institution that offers financial services to individuals and businesses.

 In many scenarios commercial banks facilitate withdrawals and deposit of money and

 facilitate loans for personal and business purposes.

Investment Banks

An investment bank primarily serves large organizations, corporations and institutions that

 need help with investments. They help with tasks like organizing and confirming mergers and

 acquisitions, issuing securities and helping businesses finance projects that require large

 amounts of funding. Highly experienced financial analysts are employed in these banks.


Retail Banks

Very similar to commercial banks yet they provide service to individual customers of general

 public in take care of the money by secure depositing and viable credit options.

Community Banks

Community banks usually exist to serve clients in the general area where they operate.

 By focusing their services on members of the community, community banks can personalize

 the services they offer and usually establish lasting relationships with the clients they acquire.

Central Banks

Not only in many countries of the world  but also in Sri Lanka we have established a controller

 to banking industry of the country which also the primary lender of banks.

With the current advancement of the economy main interests of banking has lifted  to various

 advancements like digital banking experiences and investment banking solution providers. 





02 Banking Industry of Sri Lanka

Banking industry of Sri Lanka mainly consists of licensed commercial banks and listened

 special banks alone with other financial institutions.

With the turbulent economic status of the country banking sector face many challenges which

 indoubtly create more pressure in its employees. Since the migrant worker remittances have

 been persistently law during past few quarters , which also contributed around 80% of Sri

 Lanka annual trade deficit over past two decades, using informal inward channels were a

 huge menses for the industry.

Most of private and public sector banks have high liquid asset ratios and adequate capital

 adequacy ratios and the profitability also increases. But the exchange rate increase and high

 inflationary pressures the banks are facing a challenging in liquidity and credit issues. Tighten

 monetary policy is directing  higher interest rates and banks are forecasting single digit credit

 growth in 2022.


References

https://roubler.com/wp-content/uploads/2018/06/Employee-retention.jpg

https://jbt.sljol.info/articles/47/galley/62/download/#:~:text=The%20ET%20among%20banks%20in,unable%20to%20retain%20employees%20successfully



Comments

  1. Prarthana KaranayakaDecember 8, 2022 at 9:12 PM

    It's a descriptive article on banking industry of the word and in sriLankan context.It also contain the results of monetary policy that Sri Lanka adhere currently.

    ReplyDelete
    Replies
    1. pabasaram1001December 8, 2022 at 10:35 PM

      The Central bank of Sri Lanka maintain SDFR and SLFR at 14.5 and 15.5 respectively. Tight monetary policy will help to mitigate aggregate demand pressure and bring down inflation.

      Delete
  2. Chethina PrabuddhiDecember 9, 2022 at 6:50 PM

    This is excellent description about the banking industry. Banks are most helpful to the people manage their financial income. There are many government and private banking sectors in Sri Lanka. People should be selected as their bank not gift promoted bank. They should going with funds secure interest paid bank and check stability in the society.

    ReplyDelete
    Replies
    1. pabasaram1001December 9, 2022 at 7:11 PM

      Bank whether it is owned by the government or private sector has a corporate social responsibility other than their mandate of assuring the return of their customers. In that case we can see how banks hold on to their business and customer care in pandemic situation and in social conflicts of the country. I believe most of government owned bank played a remarkable role for country and people in that burdening situation.

      Delete
  3. shash90December 9, 2022 at 8:16 PM

    This is a good article about banking industry.Actually,banks are the only mediation to flow the monetary funds of people & other funds in the business field.Banks do a major part for the economic growth of a country.

    ReplyDelete

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