Banks and financial institutions could trading 20 percent shares of the primary capital

May Sat 2024 08:18:19

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Banks and financial institutions could trading 20 percent shares of the primary capital

Kathmandu. Now banks and financial institutions will be allowed to sell shares up to 20 percent of the primary capital (core capital) after one financial year has passed. The National Bank has made this arrangement by publishing the third quarter review of monetary policy for the current financial year 2080/81.

"Banks and financial institutions will be allowed to sell up to 20 percent of their primary capital in one financial year out of the investments that have passed 1 year," the monetary policy said.

Nepal Rastra Bank has reduced the risk burden of higher purchase loans. On Friday, while publishing the third quarter review of the monetary policy of the current financial year 2080/81, it has been mentioned that the risk burden of vehicle loans under higher purchase will be reduced and maintained at 100 percent.

"The existing 125 percent risk load of hire purchase vehicle loans provided by banks and financial institutions will be reduced to 100 percent," said the monetary policy review. This will encourage banks to provide loans for vehicles.