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Message: <blockquote data-quote="warwickuni" data-source="post: 25414158" data-attributes="member: 101444">there is no such thing even banks can go bankrupt eg Pramuka but Central Bank will normally intervene to create stability in the market ge Seylan Bank . If people lose confidence in banking system it will create chaos in money market. The percentage that is kept in Central Bank as a security it very small. and that will not be enough to pay depositors at all. Even that amount kept in Central Bank , they are allowed to borrow using that as a security. So there is no amount left to give to depositors in liquidation. Capital adequacy in Tier one and Tier two will only show some indication as to where the money in the bank had gone and which is only a rough indication.There is no such indication as to Finance Companies. They are less regulated . At least ask for their ratings and observe ratings though this again not fool proof . All banks and finance companies required to publish ratings(make sure ratings from reputed company such as  Fitch, )Our Central Bank does not monitor banking and finance sectors enough eg Pramuka Bank,  Merc Bank, Seylan (revived through govt money 1b pumped , and taking over control after event) , there were issues in Pan Asia, Union Bank(Sri Lanka) but they were restructrued including Merc which is a success story and under different name now.</blockquote>

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