NRB makes upgradation tough
KATHMANDU: The central bank will re-evaluate the financial institutions that have applied for upgradation as per the new regulations it brought today.Nepal Rastra Bank (NRB) will conduct a special inspection whether the financial institutions that have applied for the upgradation are eligible as per the new criteria or not, said Bhaskar Mani Gyanwali, spokesperson for the central bank.
The central bank will allow only strong and stable financial institutions to be upgraded, he said. The new directive says financial institutions with five years in operation and positive net profit for last five fiscals will be eligible for upgradation.Along with fulfilling the minimum paid-up capital requirement, they need to have non-performing assets (NPA) under five per cent and Capital Adequacy Ratio, Single Borrower Limit, CD Ratio and Loan Loss need to conform to NRB standards.
The total lending and deposits of national level development banks to become commercial banks need to exceed 15 times the minimum paid-up capital and their customer base must exceed 25,000, it said. For finance companies to become development banks, they need to have their total lending and deposit fifteen times larger than the minimum paid-up capital and customer base of more than 10,000.
Source: The Himilayan Times
The central bank will allow only strong and stable financial institutions to be upgraded, he said. The new directive says financial institutions with five years in operation and positive net profit for last five fiscals will be eligible for upgradation.Along with fulfilling the minimum paid-up capital requirement, they need to have non-performing assets (NPA) under five per cent and Capital Adequacy Ratio, Single Borrower Limit, CD Ratio and Loan Loss need to conform to NRB standards.
The total lending and deposits of national level development banks to become commercial banks need to exceed 15 times the minimum paid-up capital and their customer base must exceed 25,000, it said. For finance companies to become development banks, they need to have their total lending and deposit fifteen times larger than the minimum paid-up capital and customer base of more than 10,000.
Source: The Himilayan Times
