| Author | Kumanan, Rasanayagam |
| Note | A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance , School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | This paper addresses the important contemporary issues of problems and prospects in implementing Basel II and III by the Sri Lankan commercial banking sector. Adoption of Basel Accords has become compulsory for banks across the globe to ensure the future stability of the world’s financial system. However, the fact that most of the banks in developing and emerging economies are lagging behind the rate at which the Basel Accords are being adopted by the developed countries. As per the survey conducted, Sri Lanka also stands behind in adoption of Basel standards in comparing with the BCBS timeframe guidelines and faces a number of unique problems due to various restrictions on them for adoption. Most of the problems are related to Capacity building, IT infrastructure, Data quality, rated entities, Cost implications, logistic support from banks, and Issues related with cost, profitability, growth, capital market which are common for almost all the commercial banks in Sri Lanka.
The author recommend that the commercial banks in Sri Lanka should make speedier and concerted capacity building measures for training human resources in targeted fields, make a reasonable investment in IT and other required infrastructure facilities wherever appropriate, expedite in developing an internal risk models and advance risk management systems and most importantly, strengthen their internal control systems, which are generally substantially weak. Moreover, banks should identify the possible barriers or problems as early as possible before starting to implement and proper solutions should be sought for the smooth and effective adoption of Basel Accords. |
| Year | 2015 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Wijewardena, W.A. ;Badir, Yuosre |
| Examination Committee(s) | Venkatesh, Sundar ; Tanatat Puttasuwan |
| Scholarship Donor(s) | AIT Fellowship |