Nepal Rastra Bank (NRB) has decided to stop issuing licenses to new banks and financial institutions. According to an NRB Board meeting on Monday, the central bank will review the existing licensing policy and procedures. "NRB is not entertaining applications for new banks and financial institutions until it appraises the current situation and prepares a report on existing licensing policy," a central bank press note read. However, banks and financial institutions that are in the pipeline will get the licence, the central bank clarified.
"We will entertain the application for D-class micro-finance institutions," the central bank said. Current NRB governor Bijaya Nath Bhattarai at the time of his reappointment had hinted at halting licences for new banks and financial institutions. According to him, the central bank wishes to have few but stronger banks rather than a huge number of banks and financial institutions. Currently, there are 181 banks and financial institutions -- 26 commercial banks, 63 development banks, 77 finance companies and 15 micro-finance development banks.
"We will entertain the application for D-class micro-finance institutions," the central bank said. Current NRB governor Bijaya Nath Bhattarai at the time of his reappointment had hinted at halting licences for new banks and financial institutions. According to him, the central bank wishes to have few but stronger banks rather than a huge number of banks and financial institutions. Currently, there are 181 banks and financial institutions -- 26 commercial banks, 63 development banks, 77 finance companies and 15 micro-finance development banks.
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