[BANKING]

Arjun Fernando new CEO, DFCC

Arjun Fernando, who joined the DFCC Bank as Deputy Chief Executive in August 2012 has been selected by the Board of Directors as the new Chief Executive of the DFCC Bank from October 1, 2013. He replaces Nihal Fonseka

The appointment will be subject to receiving regulatory approval from the Central Bank of Sri Lanka with regard to the "fit and proper" criteria specified in the Banking Act.

Fonseka said that he has accepted the invitation of the Board to assist the Board by providing continuity on strategic matters for a further period after October 1, 2013.

Arjun has been providing leadership and management oversight to the Bank's Operations and Administration, Planning, Human Resources, Technology and Corporate Communications functions and also served as a member of Management Committees since joining the DFCC.

He is a career banker with 28 years of experience with HSBC in Sri Lanka, Bangladesh and Hong Kong and has served in senior managerial positions in Corporate Banking, Trade Finance, Retail Banking and Operations.

He was the Chief Operating Officer of HSBC Sri Lanka from 2005 to 2007 and Chief Technology and Services Officer of HSBC Bangladesh from 2007 to 2010.

The proposed appointment will lead to an orderly transition in the leadership role and DFCC will be able to continue building on its strong franchise in Sri Lanka's financial services industry.

Greek MPs want probe of ex-minister in tax scandal

Greek lawmakers called for a probe into former finance minister George Papaconstantinou's alleged role in scrubbing names from a list of accused tax-dodgers, days after he was ejected from his party over the scandal.

Seventy-one deputies from Prime Minister Antonis Samaras's governing coalition proposed the parliamentary enquiry, which if voted through by the 300-seat legislature will investigate whether Papaconstantinou is guilty of "falsification" of an official document and "breach of duty".

The probe could lead to charges against Papaconstantinou, who helped draw up the debt-ridden nation's first austerity drive. The 51-year-old denies all wrongdoing in the tax affair, which he called a "conspiracy" on Sunday. The ex-minister was booted from his socialist Pasok party on Friday after it was revealed that the names of four of his family members -- two cousins and their husbands -- had been deleted from the list of alleged tax-dodgers.

Greek prosecutors are investigating some 2,000 holders of HSBC bank accounts in Switzerland for suspected tax evasion, according to media reports.

Media have dubbed the case the "Lagarde list" affair, after International Monetary Fund head Christine Lagarde, who personally gave Papaconstantinou the list in 2010 when she was France's finance minister.

AFP

Asian markets weighed by US fiscal cliff gridlock

Asian markets mostly fell in New Year's Eve-shortened trade on Monday as hopes that US lawmakers will reach a deal to avert the fiscal cliff faded just a day before deadline.

However there was some bright news out of China, where a survey by HSBC showed manufacturing activity hit a 19-month high in December. Hong Kong closed flat, edging down 9.67 points to 22,656.92, but it closed out the year 22.91 percent higher.

Sydney closed 0.48 percent lower, shedding 22.4 points to 4,648.9, although the index is up 14.60 percent over the past 12 months.

Wellington was 0.35 percent lower, shedding 14.39 points to 4,066.51, but adding 24.51 percent for 2012. Singapore closed down 0.77 percent, or 24.72 points to 3,167.08, while it is up 19.68 percent for the year.

Shanghai closed up 1.61 percent, or 35.88 points, at 2,269.13, its highest close since June 20. Kuala Lumpur added 0.45 percent, or 7.62 points, to close at 1,688.95, while Mumbai was flat, edging down 18.13 points to 19,426.71. Tokyo, Seoul, Taipei, Jakarta, Bangkok and Manila were all closed for public holidays.

Despite the losses on Monday all the region's stock markets ended the year higher, with Bangkok the standout performer. .

AFP

22nd anniversary - Seylan Bank

A special function was organized by the Galle branch of Seylan Bank Plc at its premises at Talbot Town, Galle recently, concurrent to the bank's island wide celebrations in view of its 22nd anniversary, under the auspice of Delvin Perira , bank's Deputy General Manager ( Zone 1).

On the occasion following the bank's Anniversary Community Services Programme, a donation of school books and uniform materials for needy school children of the area was also made.






 

France, Belgium pump capital into Dexia bank

Belgium and France have subscribed to a 5.5 billion euro injection of capital to bail out the Dexia bank, in line with a restructuring plan approved by the European Commission last week, a statement said Monday.

"In accordance with their undertaking, the Belgian and French states have today subscribed to the Dexia SA capital increase," the bank said. "The Belgian state subscribed to 15,342,105,203 and the French state to 13,605,263,158 new preference shares in Dexia SA, thus bringing their holdings in the capital of Dexia SA to 50.02% and 44.40% respectively."

The European Commission said the plan would wind up the core banking business while the remaining assets -- a development agency in France and the Belfius unit in Belgium -- would be put on a sound base.

The plan, drawn up by major shareholders Belgium and France, along with Luxembourg, includes state guarantees worth 85 billion euros ($110 billion).

In early November, France and Belgium agreed to inject 5.5 billion euros of fresh capital into Dexia to keep it afloat during its restructuring after the bank had to be bailed out first in 2008 and then again in 2011.

Dexia bank operated a retail business in Belgium but its core business was financing public bodies and local authorities in France and Belgium, but the global financial crisis found it over-extended and unable to raise funding. France, Belgium and Luxembourg -- which held a small stake -- decided to break up Dexia in 2011 after it sought its second bailout. In its last results, for the third quarter, Dexia suffered a net loss of 1.2 billion euros, leaving it with negative shareholder funds, meaning it had no more capital.

AFP