Central bank eases opening foreign branch regulation

Any commercial bank that has been fulfilling regulatory capital fund requirement since the past one year can now open a representative office in foreign countries. Nepal Rastra Bank (NRB) has removed the provision that required banks to maintain one per cent buffer capital additional to regulatory capital fund to open such offices in foreign countries. Class A banks that have fulfilled capital requirement, have non-performing assets of less than five per cent, and have directors, who have not been penalised by the central bank in the last six months, can open such branches. Under the provision, Global IME Bank and Himalayan Bank are planning to open their branches out of the country.