The Infinity of banking

History of banking system in srilanka The Central Bank of Ceylon was established by the Monetary Law Act (MLA) No.58 of 1949 and commenced operations on August 28, 1950. It was renamed the Central Bank of Sri Lanka (CBSL) in 1985. The Central Bank was given wide powers to administer and regulate the entire money, banking and credit system of the country. Sri Lanka has a fairly well-diversified banking system, which includes the Central Bank of Sri Lanka (CBSL), two large state-owned commercial banks (Ceylon Bank and People’s Bank), eleven private domestic commercial banks, thirteen foreign banks, a national savings bank, a regional development bank, two housing banks, and three licensed specialized banks.   Citibank N.A. is the only U.S. bank operating in Sri Lanka.   The domestic commercial banks operate branches throughout the island.   All commercial banks operate foreign currency banking units and conduct off ‑ shore business and Finance projects approved by t...

Financial Intermediary     What is a Financial Intermediary? A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment banks, mutual funds and pension funds. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in commercial banking, investment banking and asset management. Although in certain areas, such as investing, advances in technology threaten to eliminate the financial intermediary, disinter mediation is much less of a threat in other areas of finance, including banking and insurance. Benefits of Financial Intermediaries Through a financial intermediary, savers can pool their funds, enabling them to make large investments, which in turn benefit the entity in which they are investing. At the same time, financial intermediarie...