Kathmandu. Nepal Rastra Bank is going to provide nine different types of facilities to banks and financial institutions for merging.

Monetary policy has encouraged banks and financial institutions to merge for sustainable and inclusive development of the financial sector and increase of financial access. In order to strengthen the capital base of banks and financial institutions and strengthen their risk-bearing capacity, a policy has been adopted to further encourage them to participate in the merger, acquisition and acquisition process.

The central bank has said that various facilities will be provided to the commercial banks if they conduct integrated business by participating in the merger, merger and acquisition process. In addition to the facilities currently provided, the discount has been provided till mid-July 2080 BS.

The period for disbursement of loan to the merged banks and financial institutions in the specified areas will be extended by one year and a discount of 0.5 percentage point will be provided on the limit of compulsory cash reserve for one year of consolidated transactions. Provide a discount of one percentage point in the statutory liquidity ratio for one year after the consolidated transaction, and the deposit collection limit per institution will be increased by five percentage points.

The Central Bank has taken the policy of providing exemption in the provision that a member of the Board of Directors and a high-ranking employee cannot be associated with any other organization licensed by the bank for at least six months after his resignation. The interest rate differential between loans and deposits to be maintained as directed by the Central Bank will be waived by one percentage point.

Provision has been made for the approval of this bank to merge or close other branches by maintaining one of the branch offices within one kilometer in the course of conducting integrated business. The monetary policy stipulates that a fit and proper test will not be mandatory when a shareholder of a founding group holding 0.10 percent or less of a commercial bank sells such shares.

A policy has been taken to provide additional facilities and discounts to the development banks and finance companies declared as problematic if the licensed banks and financial institutions obtain them. In order to further encourage the merger / acquisition process, after the merger / acquisition, only one group selected by the founder and the general shareholders will be able to nominate the operator.

If the state level development bank merges with each other or joins in the acquisition process, if it conducts integrated business, approval will be given to establish a corporate office in a suitable place within the jurisdiction and to open a liaison office in the state capital and Kathmandu.