Total number of BFIs drop from 200 to 193

ShareSansar, August 25:

Fiscal year 2014/15 confronted the reduction in numbers of BFIs as per CMES annual report.

The report entitled 'Current Macroeconomic Situation of Nepal (Based on the Annual Data of 2014/15)' has attributed the total number of banks and financial institutions (BFIs) licensed by the NRB dropped to 193 in mid-July 2015 from 200 as of mid-July 2014.

According to the data disclosed by Nepal Rastra Bank (NRB), the total number of commercial banks stood at 30 while the number of development banks, finance companies and microfinance development banks stood at 76, 48 and 39 respectively as of mid-July 2015. Despite the decline in the number of BFIs due to merger and acquisition, financial access has widened because of expansion in number of BFIs branches from 3430 at mid-July 2014 to 3838 at mid-July 2015 along with the expansion of some products such as mobile banking and branchless banking.

Monetary Policy 2072/73 has introduced a provision regarding increment in capital base to strengthen the banks and financial institutions of the country. If the financial institution fails to increase their paid-up capital at required level by Ashad end of 2074, it may result in the process of merger with other financial institutions. The number of BFIs will be less in number in upcoming days.