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Fitch warns Sri Lanka's state banks may face weaker capital ratios due to a new reserve requirement.
Fitch Ratings warns that Sri Lanka's state banks, despite being more profitable, may show weaker regulatory capital ratios compared to private banks due to a special reserve requirement.
This reserve, set at 15% of foreign-currency exposure and aimed at mitigating settlement risks, is not counted in capital adequacy measures.
The Central Bank mandated this reserve, which will affect state banks' capital after a six-month period starting from the end of 2024.
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Fitch advierte que los bancos estatales de Sri Lanka podrían enfrentar ratios de capital más débiles debido a un nuevo requisito de reservas.