Governor seeks stronger regulation

KATHMANDU, MAR 7: 

Central bank governor has asked for a stronger regulatory body to avert any risk in the financial sector.

“There should be a strong regulatory body that can monitor the financial sector and minimise risks,” said central bank governor Dr Yubaraj Khatiwada formally inaugurating ‘SEACEN-Toronto Centre Course on Risk Based Supervision’ organised jointly by Nepal Rastra Bank and SEACEN-Toronto Centre since Monday.

“The seminar will help minimise financial market risks faced by South Asian nations,” he said, adding that SEACEN-Toronto Centre has acted as a common platform where regional central banks can share ideas and knowledge among themselves. “The global financial crisis has already shown that there is a need to have a regulatory tool to balance the financial health of institutions to stay afloat.”

Similarly, technical advancements, globalisation, rising international trade, and regional trade have invited more loan and management risks,” he said, adding that due to these emerging factors there is a need to have a risk management mechanism with a strong monitoring system to regulate the financial market.

“The central bank has been working on Macro Prudential Stability through Risk Management Guideline and Stress Testing Guideline apart from on site and off site inspection to strengthen the financial sector,” said Khatiwada. Officials of SEACEN member central banks are participating in the six-day long seminar.

Source: THT