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Principles of Commercial Banking Principles of Liquidity A commercial bank offers two types of deposits Demand deposits which the bank has to repay on demand like a Savings Account and Time deposits which the bank has to repay after the expiry of a certain period Further, on a daily basis, customers withdraw as well as deposit cash. therefore, all commercial banks have to keep a certain amount of cash in their custody to meet the cash demands of customers.                                                                                                                                                Source: Clipart Library Principles of Profitability Any commercial enterprise primarily tries to generate profit. A commercial bank is a commercial enterprise as well. Hence, it tries to generate profits. Principles of Solvency Commercial banks must be financially sound. Further, they need to maintain a certain required capital for running the  Principles of Safety A c
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BANKING SECTOR IN SRI LANKA The  banking sector in Sri Lanka a is monitored by the Bank Supervision Department of the central bank of sri Lanka under the Banking Act, Monetary Law Act and the Exchange Control Act. Three types of financial institutions are permitted under Banking Act and the Finance Companies Act to operate in sri lanka by the central bank of sri Lanka.They are Licensed Commercial Banks Registered Finance Companies Licensed Specialized Banks These institutions can accept deposits from the public. The number of licensed specialized banks reduced from 14 to 9 and the number of registered financial institutions increased from 31 to 36 during the period of 2007 to 2010.The current list of banks in sri Lanka    is published by central bank of sri Lanka periodically.
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Innovative Banking Innovation means something new or something which had not been done before. The same goes for banking section as well. There are many sections in banks which are going through or have gone through innovation in recent past. They are no longer restricted to age-old (traditional) methods. Thus, to increase the business avenues and capture the new market banks are resorting to innovation. This term innovative banking is being in use a lot nowadays. Innovative Banking There are many types of banking facilities that the banks have started in recent years. These are the following types of innovative banking used by the banks these days: Mobile Banking Mobile banking has been a revolution in the past few years. It has completely changed the way banking systems are working.  Thus, it is a system that allows customers to perform many types of financial related services through a smartphone. These include services like ATM locations, bill payment alert, inter o
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History of currency in sri lanka Sri Lanka is a country with a long history and a similarly long and rich economic history. A study of that history will doubtlessly prove fruitful not only for economists but for everyone in the society. Coins used through different time periods of a country play an important role when studying the history of that country. Although small in size, a coin has the ability of giving a wealth of information about the economic and cultural history of the country where it was used, through signs that remain on them. Sri Lanka’s currency-use can be divided into following periods. Anuradhapura Era Coins used in Anuradhapura Era  Kahapana  Swastika coins  Maneless Lion coins  Lakshmi Plaques  Kahavanu or Lankeshvara coin  Foreign Coins  Anuradhapura Kingdom named for its capital city, was the first established kingdom in ancient Sri Lanka. Founded by King Pandukabhaya in 377 BC. Epigraphs reveal a multitude of Information about trade and curre
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 Financial intermediation A financial intermediary Qis an institution or Financial intermediation A financial intermediary is an institution or individual that serves as a middleman among diverse parties in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, pooled investment funds, and stock exchanges. Financial intermediaries reallocate otherwise uninvested capital to productive enterprises through a variety of debt, equity, or hybrid stakeholding structure. Through the process of financial intermediation, certain assets or liabilities are transformed into different assets or liabilities. As such, financial intermediaries channel funds from people who have surplus capital (savers) to those who require liquid funds to carry out a desired activity (investors). A financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lender
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PRODUCT CATEGORY OF PAN ASIA BANK Deposits Saving Accounts                                Normal savings                            Rs1000 Champion saver                            Rs1000 Salary accounts/salary saver       Rs200 Sammana saving                            Rs200 Minor saving account                      Initial deposit Daskam         1000 Mithuru         500 Target investment plan 2 year investment plan 3 year investment plan 4 year investment plan 5 year investment plan Blue chip money market saving Below 10 mn-   0% Above 10mn -   10.5% Currency Interest rate AUD 2.25% CAD 1.00% CHF 0.5% EUR 1.15% GBP 1.5% JPY 0.10% USD 2% Promotions Loans Sawbagya loan scheme                                8% Awakening north refinance                         9% Dairy development loan scheme                6% Niwasa home loan                                         17% Step up niwasa housing loan                       16.5%
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The Bank's Begining To accommodate dynamic economic and financial system developments upon gaining independence in 1948, the post-independence Government of Ceylon (as Sri Lanka was then known) established the Central Bank of Ceylon to maintain an active monetary policy regime and a dynamic financial sector to support and promote economic growth. Prior to the establishment of the Central Bank, the Currency Board System set up under the Paper Currency Ordinance No.32 of 1884 functioned as the country’s Monetary Authority, though very narrow in its capacity. This system was deemed inadequate for a developing country upon gaining political independence.  Technical expertise to establish a central bank was sought from the United States of America (USA) in July 1948, with Mr. John Exter, an American economist from the Federal Reserve of USA being appointed to carry out this task. The Exter Report on the rationale and the legal framework for a central bank was presented to the
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