The World Bank has approved US$ 30 million credit to help Nepal accelerate its financial sector reform programme.
This programme is aimed at reducing vulnerability of the banking sector and increasing transparency.
The ‘Nepal Financial Sector Stability Credit’ will support six main policy areas - formulation of a financial sector development strategy; restructuring of Nepal Bank Ltd and Rastriya Banijya Bank; assessment of the condition of Class A, B and C financial institutions and potential restructuring; strengthening institutional arrangements to support the bank restructuring process; strengthening the legal and regulatory framework for effective bank resolution; and increasing the transparency of the financial system.
“The proposed credit recognizes the important progress made so far by the Nepali authorities to tackle financial sector vulnerability and supports the acceleration of a medium term reform strategy which commenced implementation in 2011,” said Johannes Zutt, World Bank Country Director for Nepal and Bangladesh.
This programme is aimed at reducing vulnerability of the banking sector and increasing transparency.
The ‘Nepal Financial Sector Stability Credit’ will support six main policy areas - formulation of a financial sector development strategy; restructuring of Nepal Bank Ltd and Rastriya Banijya Bank; assessment of the condition of Class A, B and C financial institutions and potential restructuring; strengthening institutional arrangements to support the bank restructuring process; strengthening the legal and regulatory framework for effective bank resolution; and increasing the transparency of the financial system.
“The proposed credit recognizes the important progress made so far by the Nepali authorities to tackle financial sector vulnerability and supports the acceleration of a medium term reform strategy which commenced implementation in 2011,” said Johannes Zutt, World Bank Country Director for Nepal and Bangladesh.
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