Reuters
Sri Lankan Prime Minister Ranil Wickremesinghe has asserted that the proposed Sharia University will now not be accepted in Batticaloa. Mr. Wickremesighe said the authorities can not approve Sharia Universities in Sri Lanka and will handiest approve diploma awarding institutions.
He also stated that measures might be taken to deliver all Madrasa schools underneath the purview of the Ministry of Education. His remarks came as there is substantial opposition to the university in the wake of the Easter Sunday attacks, killing over 250 human beings, including forty-five foreigners. Meanwhile, Sri Lankan military chief has asked the mother and father to ship their kids to high school, saying the safety has been ensured in use of a. Lieutenant General Mahesh Senanayake stated even though special security features had been taken at colleges to commence the second one-term, most mother and father did no longer send their youngsters to school because of rumors.
He stated that supplying safety to colleges was the priority of police and the tri-forces. The navy leader said all steps had been taken to offer safety to schools and requested parents to send their youngsters without any fear. His assertion got here as one month has passed because Easter Sunday assaults on lodges and churches in Sri Lanka. Few programs are being organized nowadays in remembrance of those who misplaced their lives. In recent years, universal banking has been growing its popularity in Indonesia.
Mandiri Bank, for example, has taken a strategy to become Indonesia’s universal bank; this bank has also initiated to development of an integrated financial risk system in terms of sounding financial performance and increasing shareholder value. In Germany and most developed countries in Europe, universal banks have initiated their operations since the nineteenth century. There is mounting evidence that universal banks have taken an important part in the development of real sectors and the financial system in those countries. In those countries, the growing numbers of universal banking practices are really supported by central ban the k.
Despite this, in The United States, they are strict about regulating universal banks by blocking commercial banks from engaging in securities and stock market practices. They argued that the practice of universal banking might be harmful to the financial system. ((Boyd et al., 1998) cited in Cheang, 2004) The “risk” might be the key reason why the central bank of The U.S is worried about the universal banking system. Since, if the center of bank allowed banks to adjust their operation to be universal banks, the relationship among banks, financial and stock markets would be closer.
Consequently, this would give uncertainty to the bank’s condition and performance. For example, if there were a disaster in the stock market, banks would get problems in their financial positions. Thus, they would tend to be insolvent. In addition, universal banks would also threaten the market share of other specialized institutions because more customers would choose universal banks that offer more options for their investment. Hence, more specialized institutions are likely to be ruined in the U.S financial industry.
One major factor triggering a bank to be a universal bank is to increase the profit by enlarging its market share. According to João A. C. Santos (1998), universal bank itself can be defined as a financial institution, which enlarges its service range in offering various financial products and services in one site. Thus, by operating universal banking, banks could get a greater opportunity to expand to another financial area, such as financial securities, insurance, hedge funds, etc.
Although the trend of banks has recently tended to universal banks, it is undoubtedly true that universal banks would also face further risks because a wide range of financial services is strongly associated with increased risks and escalating monitoring costs. These are the major concerns why banks have to implement more advanced technology in terms of financial risk management. Moreover, the practices of universal banks would cause significant risks to the economy’s payment system. Since the operation of universal banks connects closely to the financial and stock markets that very fluctuate in the short term.