KATHMANDU, July 23: Nepal Rastra Bank (NRB) is going to restructure the loans of borrowers who are in trouble due to natural disasters or other special circumstances.
As mentioned in the regulation and supervision of the monetary policy unveiled on Sunday, the NRB will issue a 'Stressed Loan Resolution Framework' including measures and procedures to be followed by banks and financial institutions for revival and other management by arranging credit restructuring and other measures.
Sticking with New Year’s resolution
Similarly, it is said that the asset quality of commercial banks will be re-evaluated. In addition, guidelines for internal credit risk classification of banks and financial institutions will be formulated and implemented.
It is said that even the national level development banks will have to maintain capital funds in accordance with the Capital Adequacy Framework 2015.
On the basis of the analysis of the current situation of credit disbursement, there will be a necessary review to the existing arrangements regarding the need to invest in the designated areas.
As mentioned in the budget of the Government of Nepal for the fiscal year 2023/24, the provision that borrowers who use loans/facilities exceeding a certain limit from the banks and financial institutions must obtain a permanent account number will be reviewed.
