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Consolidation

Jan 14, 2013 (LBO) - Sri Lanka's financial regulator, the Central Bank, said it will outline a master plan to consolidate banks and finance companies with one-to-one meetings to be held among lenders thereafter.
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The 2009 one involved property and oil derivatives going bad, and the 2011/2012 bubble involved state enterprise credit, margin and gold backed loans.

High taxes on motor vehicles following the 2012 balance of payments crisis may also hurt the leasing and hire purchase sector as the vehicles are purchased at high prices as the economy slows down, analysts say.

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To avoid credit bubbles interest rates have to be allowed to rise as soon as private and state credit picks up but due to a rise in neo-Mercantilism and state intervention after World War II states have attempted to resist credit pressures with policy rates with greater negative outcomes.

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US attempts to resist interest rates for example led to the collapse of the Bretton Woods system in 1971 amid a commodity shock, and persistent ultra-low interest rates since 2001 known as the 'mother of all liquidity bubble' created the current global economic crisis.

The Great Depression was also generated by the Fed through its 'roaring

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