Gold loan crisis hits personal loans too

April, 17, 2014

Banks in Sri Lanka reduced their loans provided with gold as security since they faced a huge crisis due to the continued decrease in gold prices in the world market.

The main reason for the country’s banking system reducing its loans to the private sector last year is the decrease in providing gold loans, says the Central Bank.

It had been recently revealed that further neglect of gold loans Sri Lankan banks had to set aside more capital on non-performing loans that earlier.