The Asian Development Bank (ADB) has recognized People’s Bank by awarding it the “Trade Deal of the Year” at the prestigious ADB Trade Finance Program Awards 2020 (TFP Awards 2020) jointly with Standard Chartered Bank.
The TFP Awards recognizes leading partner banks of ADB and the fact that the aforesaid award was one of the key awards of this ceremony chosen from hundreds entries submitted by of leading banks in Asia highlights the significance of this accolade. The award was received subsequent to a rigorous independent evaluation which takes in to account multiple factors such as how the particular transaction impacted the country, how it helped the client to improve their business and how TFP contributed to the success of the transaction.
TFP provides guarantees and loans to banks to support international trade. Backed by ADB’s AAA credit rating, the program works with over 200 partner banks in Asia to provide companies with the financial support they need to engage in import and export activities. Since 2009, ADB’s TFP has supported more than 12,000 small and medium sized businesses across developing Asia in sectors ranging from commodities and capital goods to medical supplies and consumer goods.
People’s Bank, which has one of the largest footprints across the country, kept trade routes to Sri Lanka open by supporting its customers to transact with counterparties across the globe even during the Covid 19 crisis. The pivotal service it renders to the nation was highlighted yet again through this recognition as this particular award was for a transaction for the importation of critical medicines and medical equipment during the height of the Covid crisis in April 2020.
People’s Bank, using its trade finance facilities, had made it possible for their customers to trade with companies that would otherwise be reluctant to tradewith them due to heightened risk perceptions.The bank enhanced its ability to provide trade finance facilities to customers by joining the Asian Development Bank’s Trade Finance Program in 2011.
Some foreign companies or their banks may have risk limits to Sri Lanka or region, which may make them unwilling to trade. Sri Lanka has a ‘B-‘ level country rating from Fitch Ratings which may exceed internal risk limits set by some foreign banks and customers. As a result, the counterparty bank may want a letter of credit opened by a customer in Sri Lanka to be confirmed by another party, which would incur an additional cost. Since People’s Bank is participating in the TFP, bank is able to use an ADB guarantee and give comfort to the foreign parties to transact business with Sri Lankan entities.
Foreign companies value the ADB guarantee due to the high standards maintained by the Asian Development Bank in evaluating and accepting a bank into its program which involves comprehensive due diligence. The TFP has also helped Sri Lanka during the recent credit downgrade, allowing business to continue.
Peoples’ Bank has a large customer base ranging from small and medium business to large companies and also state enterprises. It has an asset base of over Rs. 2.1 trillion.Since its inception 59 years ago, People’s Bank has opened its doors to customers across the country, and has continuously leveraged its resources to uplift many lives through financial services and sharing of expertise. With an insight into the financial needs of the citizens, from young to old, People’s Bank has constantly strived and committed itself to elevate the living standards of the citizens. Through its country’s largest network of 739 branches People’s Bank serves more than 14 million customers which is the largest customer base in the Sri Lankan banking industry offering a wide spectrum of financial services. The bank also provides its services 24 hours a day, 7 days a week and 365 days a year via its Self-Banking Units amounting over 200 across the island. This helps People’s Bank customers to conduct numerous banking transactions with utmost efficiency and convenience, without requiring to visiting a bank branch in person. People’s Bank also continues to play a pivotal role in encouraging and empowering scores of industries including agriculture, real estate, commercial development, small and medium enterprises, as well as import and export sectors thus supporting the macro-economic development of the country.
Source From asianmirror business
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