Financial services industry critical to emerging economies
Financial services organizations should focus on improving
profitability in the context where new manipulations and challenges are
the order of the day.
“The industry should look at balancing the demands of regulatory
change. The financial services industry should remain as essential and
important part of the economy, but the challenges faced by this industry
are diverse. Therefore regulation is an important factor for stability
and success. We must expect and encourage better regulation which should
be both effective and of high standards. Today in these challenging
times, it is important that we all unite, work together and learn
lessons from both at local and global level,” a senior bank official
The financial services industry is critical to emerging economies
such as Sri Lanka; as productivity increases in the financial sector, it
is important to ensure that the growth is allowed to develop
With the global financial system at historic level at this
point,credit in the future is a challenge not only from the long term
perspective,but also from near-term perspectives as well. Over the long
term the range of external forces, critical uncertainties will shape the
future of global and even local financial system .
DFCC Bank Chief Executive Officer Nihal Fonseka said the entry of Sri
Lankan banks into the global market is a highly regulated business where
banks will have to follow and adopt certain regulations.
“It is no longer an easy task to enter into another market,sometimes
the size of the industry becomes a major impediment for us to penetrate
into another market. Being a small player, local banks would find it
quite difficult to expand its presence in the region rather than a big
player,” Fonseka said.