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Contents

Part X · Macroprudential Authority

64. Macroprudential powers of the Central Bank

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

The Central Bank, as the macroprudential authority may-

(a)

monitor, identify or assess the build-up of risks and vulnerabilities in the financial system;

(b)

request, collect, compile, analyze or publish data, information and statistics in order to achieve the macroprudential objectives;

(c)

conduct stress testing and simulation exercises;

(d)

designate systemically important financial sector participants under section 68;

(e)

adopt and apply the macroprudential instruments indicated in section 66 to financial institutions regulated and supervised by the Central Bank;

(f)

adopt and apply enhanced macroprudential oversight to systemically important financial sector participants;

(g)

identify gaps in regulation that could pose systemic risks;

(h)

formulate strategies and policies to mitigate or address identified systemic risks;

(i)

monitor domestic and international financial regulatory developments and advise on legislative or regulatory measures that will enhance financial stability;

(j)

develop and propose prudential standards to be applied by relevant financial sector authorities in respect of financial sector participants regulated and supervised by such authorities;

(k)

facilitate information sharing and cooperation among relevant financial sector authorities; and

(l)

propose to the Financial System Oversight

Committee the recommendations to be issued to public or financial sector authorities.

(2)

The Governing Board shall meet at least quarterly for the purpose of deciding any matter in relation to macroprudential authority under this section.

(3)

The Central Bank shall, without prejudice to its autonomy, communicate to the Financial System Oversight

Committee, such information as may be necessary for the exercise, performance and discharge of powers, duties and functions under this section.

Part XI

Financial System Oversight Committee

Part XII

Information Exchange with Financial Sector Authorities

Part XIII

Statistics and Information

Part XIV

Relationship with the Parliament, the Government and the Public

Part XV

Credit Operations

Part XVI

Financial Provisions

Part XVII

Internal and External Audits

Part XVIII

General Provisions

Part XIX

Repeals and Savings