The government plans to shortly amend laws to allow consolidation in the banking sector as well as laws to form a debt recovery agency.
The Banking Act is being amended to include provisions for takeovers and mergers.
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rnldblquote The amendments are before the Finance Minister now and we expect them (laws) to go to parliament sometime March, dblquote Central Banks Deputy Governor, W A Wijewardene said.rn
rnThe current banking laws do not provide for consolidations. Local bankers have been lobbying for changes for years, with analysts expecting five conglomerates to emerge in the event of a consolidation.
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rnCurrently National Development Bank is waiting for regulatory approval to merge with its commercial banking unit, NDB Bank, to capitalise on synergies.rn
rnldblquote We understand a favourable response is coming our way, but we cant give a time frame as to when it will come, dblquote says NDB chief, Nihal Welikela, addressing a banking seminar on Wednesday evening.rn
rnNDBs rival DFCC