Sri Lanka margin loan limit lifted: Central Bank

Gainer · 1 Sri Lanka margin loan limit lifted: Central Bank Tue Dec 20, 2011 12:19 am

Gainer

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Dec 19, 2011 (LBO) - Sri Lanka's central bank has lifted a 5.0 percent limit on margin loans by saying a correction in stock prices showed that the danger of an asset price bubble has passed.
The central bank said declining earnings multiples of firms and lower utilization of margin credit showed that banks were managing risks prudently.
The central bank said lenders could set their own internal limits for margin loans.
Margin loans are in demand when markets go up.

Gainer · 2 Re: Sri Lanka margin loan limit lifted: Central Bank Tue Dec 20, 2011 12:24 am

Gainer

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Good news from tomorrow market will move up...

sidath perera · 3 Re: Sri Lanka margin loan limit lifted: Central Bank Tue Dec 20, 2011 9:41 am

sidath perera

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I don't think it will have any impact on the market. Most banks are complaining that they cannot get enough margin clients to even fill the 5% limit.

Something else may make the market move up, not not the relaxing of bank credit.