'Retail banks need to transform'
Ramani KANGARAARACHCHI
Retail banks now need to transform from medium to large considering
the changes in the next five years. Central Bank Governor Ajith Nivard
Cabraal said at the World Savings Bank (WSBI) and National Savings Bank
(NSB) 18th Asia Pacific Regional Group Conference at Cinnamon Grand
Hotel Colombo yesterday.
Delivering the keynote address at the two day conference on 'The
Competitiveness of Current Retail Banking of WSBI Members,' he said
retail banking is different from others on the circumstances where even
a small one can become big through the support of someone else.
Cabraal said to meet this challenge retail banks have to be conscious
about access to markets by recruiting people with necessary culture.
Banking beyond branches is another factor. As the internet has the
access to everything required today there is no need to go for branches.
But developing youth and continuous investment of R and D is a must. In
the meantime a new IT structure also will be required in three years
time. Referring to the challenges of Central Bank Cabraal said that
regulating is another challenge because the CB has to ensure customer
protection and prudential controls. It is necessary to mandate certain
sections such as having debt counselling and regulating connected
institutions to ensure no risk to the overall system.
He pointed out that these issues will have no permanent answers but
continue to stay and therefore it is necessary to stay abreast to be
successful in the competitiveness. WSBI represents 23 member
institutions from 16 countries in the Asia Pacific Region and functions
as a platform to build relations with national, regional and
international institutions and to exchange experiences with peers from
within and beyond the region.
This year's meeting in Sri Lanka is significant as it coincides with
40th anniversary celebrations of NSB bringing together more than 40
delegates from WSBI member institutions and the NSB .
Senior Minister of International Monetary Cooperation Dr Sarath
Amunugama was the chief guest and Chairman of WSBI Asia Pacific Regional
Group Adinan Maning, Director Training and Consultancy WSBI and Chairman
NSB Pradeep Kariyawasam were present. |