NRB to encourage merger and acquisition of BFIs

Kathmandu, July-26 The Nepal Rastra Bank (NRB) is planning to effectively implement merger and acquisition of the banks and financial institutions (BFIs) as its attempt to promote financial stability.

The merger and acquisition of the BFIs would be made further effective as the institutions were getting stronger after implementation of the Merger and Acquisition Guidelines.

NRB Governor Chiranjibi Nepal said that the central bank has taken the policy of increasing the amount of paid up capital for the development of BFIs, adding that merger and acquisition would be further encouraged.

The total number of BFIs has deceased but the branches have increased after the merger and acquisition of the banks and financial institutions.

Till the end of the fiscal year 2014/15, 78 banks and financial institutions have merged to become 30.

Currently, a total of 195 BFIs including 30 ‘A’ class banks, 79 ‘B’ class banks and 50 ‘C’ class banks are into operation.

Likewise, the number of ‘D’ class-licenced BFIs has reached 36.

Source: THT