NRB forms taskforce to recommend banking sector reforms

KATHMANDU: Nepal Rastra Bank (NRB) has formed a three-member 'Banking Sector Reform Suggestion Taskforce' to propose measures to strengthen the country’s banking sector

Dr Rewat Bahadur Karki will serve as coordinator, with Bhuwan Kumar Dahal as member and the executive director of NRB’s Banks and Financial Institutions Regulation Department as member secretary.

The taskforce has been given one month to submit recommendations on several key issues. These include developing liberal yet prudential banking policies, implementing effective risk-based supervision and delivering customer-friendly services; defining the banking sector’s role in energising economic activity; ensuring efficient credit flow to rural areas; identifying and resolving challenges related to mergers and acquisitions of banks and financial institutions and their post-merger integration; outlining the sector’s contribution to removing Nepal from the Financial Action Task Force (FATF) Grey List; and clarifying the central bank’s coordinating role in capital market development.