89 BFIs have merged with each other resulting in the formation of 33 BFIs as of mid-May 2016: NRB

The number of BFIs opting for merger has been increasing after the introduction of merger policy aimed at strengthening financial stability. After the issuance of the "Bank and Financial Institutions Merger By-law, 2011", 89 BFIs have merged with each other resulting in the formation of 33 BFIs as of mid-May 2016. Likewise, 2 finance companies were acquired by a commercial bank and one development bank was acquired by another development bank. As of mid April 2016, eleven institutions including 2 development banks and 9 finance companies are under resolution process. Total deposits and loans of such institutions stood at Rs. 3.43 billion and Rs. 6.77 billion respectively. The overall capital fund of these institutions is negative by 38 percent and non-performing loan stood at 95 percent.