The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 65The Risk Management Department is designedto comprise three units namely, Credit Risk MonitoringUnit, Treasury Middle Office and Operational RiskMonitoring Unit. In addition, a separate unit carriesout Quality Assurance, Business Continuity Planningand Information Systems Security.Our Approach to MonitoringRisk and CapitalAvailability of adequate capital in the businessacts as a cushion against risk. Hence, minimumcapital requirements have been stipulated by theauthorities as a prudential means of regulation.The Bank had a deteriorating capital adequacy ratioin the early part of 2008.The capital adequacy ratio that had fallen belowthe required level towards the end of the year 2008got restored at 11.74% towards December 2009which is above the statutory requirement of 10%.This was a result of several strategic moves andstrategies adopted by the Bank including the issue ofnew shares to boost the capital base. The restorationof the capital adequacy requirement was a majorachievement of the Bank during the year 2009.