Central bank brings strict code of conduct for supervisors

The central bank has brought strict code of conduct for its employees, who will be assigned to supervise the banks and financial institutions.

The Nepal Rastra Bank Monitoring and Supervision Bylaw 2070 has barred the supervisors from purchasing shares of banks and financial institutions from the secondary market, taking part in parties except public events and using the vehicles, taking loans at concessional rates, and accept presents of and from the banks and financial institutions.

The central bank has brought the bylaw that states that one has to inform the central bank, if a supervisor or family members have promoters’ shares or more than one per cent share in any bank and financial institution, or if the supervisor’s family members hold the post of director, chief executive officer, senior official or business partner.

The central bank brought the code of conduct as the supervisors on special job need integrity. The move also aims at making the central bank more accountable and discourage the misuse of power.