Central Bank Governor Nivard Cabraal being greeted by the Association of Professional Bankers Sri Lanka members yesterday at its 32nd Anniversary Convention, titled ‘Sprinting Ahead with Agility’ – Pic by Ruwan Walpola 

• Outlines six focus areas to fuel confidence and economic stability to steer through the challenging times
• Describes bankers as a fraternity that has to work collectively
• Insists on equipping skillsets, cautioning it would otherwise expose all holding high positions in banks to challenges
• Believes existing challenges would not be as severe as experienced, but likely to remain for another year
• Opines banks need to ensure clarity and confidence in each step to succeed in the journey 

By Charumini de Silva

Central Bank Governor Ajith Nivard Cabraal yesterday called on the banking sector to be agile in order to “stay the course” and fuel confidence and economic stability to steer through the challenging times.

Emphasising that agility is a key ingredient in times of turmoil, he outlined six focus areas that the banking sector should ponder on to overcome the headwinds. These include thinking out of the box, taking bold decisions, erring on the side of caution, regular communication, following up on plans, and equipping with necessary skillsets.

“Bankers need to be agile in times of challenge. In that context, these challenges we are facing today must be considered very seriously, as these are not only local, but forthcoming globally which needs to be dealt with,” Cabraal said at the 32nd Anniversary Convention titled ‘Sprinting Ahead with Agility’ of the Association of Professional Bankers (APB) yesterday.

Elaborating on the key focus points, he said that banks need to depart from norms they are used to and explore new options that were not considered or are totally unheard of.

“During good times, there may be certain steps that you can decide over a long period, but in times of turmoil, you need to take bold steps quickly. These bold steps also reflect on instilling confidence among customers, fellow bankers, markets, borrowers, creditors and other stakeholders. Banking is all about confidence, it is the foundation on which the whole system of banking rests – otherwise, it will not be successful,” Cabraal pointed out.

He also told banks to err on the side of caution. “If you are erring on the side of more than less, take bold steps to deal with the issues. Do more than necessary sometimes. If you do more, it may be sufficient; and if you do less, it may be insufficient,” he explained.

The Central Bank Chief described bankers as a fraternity that has to work collectively, whilst pointing out that it was important to equip and develop skillsets to deal with difficult conditions as well as to forge the industry forward.

“All who are holding high positions in the banking sector will be exposed to those challenges, and therefore it is critical to equip necessary skillsets to deal with it,” he stressed.

Regular communication was another factor he elaborated on as a necessary tool to engage with the consumers and other stakeholders and to keep them informed on steps necessary to go forward as well as to markets and the country at large.

Highlighting that intense follow-up on plans and keeping a tab on delivery timelines for best results were important, Cabraal, however, told the banking industry not to get discouraged by the pessimists. 

Going forward, he believes the challenges would not be as severe as experienced. “The world is not going to have a big change in the way we do business in the next few months, or perhaps the next one year. We need to strike a balance in the way we approach stability and growth. It is also the same with the country.”

“In every journey, each step is important. The banks, too, need to ensure clarity and confidence in the step of the way to succeed in the journey. If we can pull on these together, I am sure Sri Lanka will be able to steer through the headwinds the country is experiencing currently,” he added.

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