Bank wise Analysis of Cheque Returns
For the reason of maintaining secrecy of operations under the prevailing laws the Commercial Banks operating in Sri Lanka have been classified into three broad categories for this analysis. These categories are namely ‘State Banks’, ‘Domestic Private Banks’ and ‘Foreign Banks’. Chart 2 indicates that out of the total volume of cheques received by the Clearing House each month an average of 54% of cheques are collected and presented by Domestic Private Banks and 39% collected and presented by the State Banks. |
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| The value of cheque collected by the state sector amounts to Rs.161.94 billion which yields 47% of the total value of cheques received. Whilst the total value of cheques collected by the Domestic Private sector amounted to Rs.137.47 billion. (Refer Chart 3) |
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| The volume and value of cheques drawn on the different Banking sectors are depicted in Chart 4 & Chart 5. Volume of cheques drawn on the State Sector is higher at an average of 52% and cheques drawn on the Domestic Private Sector is at 42% each month. Values of these cheques are distributed as 44% in the State Sector amounting to Rs.152.39 billion, 30% in the Domestic Private Sector and 26% in the Foreign Sector. |
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| Dishonoured cheques
are found to be high in the State Sector at a total monthly
average of 51%, whereas 47% was from the Private Sector and
the rest in the Foreign Sector (Chart 6). On the other hand
values of these dishonoured cheques were higher in the Domestic
Private Sector at 55% and the State Sector falling
in second at an average of 42% (Chart 7). Here again one has
to take cognizance that bulk of Government accounts are with
the State Sector which are generally considered as ‘Safe
Cheques’. |
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| As shown in Table
1 below an average of 3.89 million cheques are received for
clearing every month and an average of 5.80% of these cheques
are dishonoured. The percentage of cheque returns has been consistent.
The value of cheques received on an average month for clearing
amounted to Rs. 346 billion and the value of dishonoured cheques
amounted to Rs. 10.96 billion a month. The value wise returns
of Domestic Private Banks indicate a 4.40% above the National
Average of 3.17%. Volume wise State Banks relative figure
is 7.57% and above the National Average of 5.80%. |
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