Agreement between NRB and Central Bank of China

Kathmandu March 15- Agreement on technical support on regulatory supervision sector could be materialized  between NRB and China’s Central Bank People’s Bank of China during PM KP Sharma Oli’s forthcoming China visit.

Spokesperson of NRB Trilochan Pangeni informed that agreement regarding regulatory supervision and bilateral relations will finalized between central banks of both countries. NRB Governor Dr. Chiranjibi Nepal and Chief Executive Director Narayan Poudel will join PM Oli during the visit in order to craft the agreement.

Pangeni believe that the agreement will facilitate smooth flow of information between two central banks and provide support in technical subject. He also stated that the agreement will ease any trouble during banking transactions. Similarly, it will ease Chinese banks to open branches in Nepal through which Nepal will also benefited. Nepal has sent proposal to open branches of Chinese bank during the PM Oli’s visit to China.

As per WTO regulation, Nepal has permitted foreign banks to open branches but not a single bank has taken an initiation in this regard since 2010. Above all, with the increasing trend of trade with China and also booming infrastructural investment of China in Nepal, opening of branch of Chinese Bank will help bilateral trade of both coutries.