The central
bank has taken over the board and management of troubled Nepal Share Markets
and Finance.
The second
takeover by the central bank in a week has, though came late, is expected to
improve the financial health of the class C financial institutions that has
been declared troubled since last two year.
According to
the regulation, a financial institution that is declared troubled has to be
taken over by the central bank, if it doesnot improve within six months.
A three member
team led by Nepal Rastra Bank deputy director Santosh Kumar Ghimire will take
charge of the finance company for six months from Sunday.
Former chairman
of Nepal Share Markets and Finance Yogendra Shrestha was arrested on the charge
of embezzlement of Rs 2.66 billion by Central Investigation Bureau (CIB) last
year as he was found involved in creating fake borrowers and misusing the
deposits of the public.
Earlier this
week, the central bank has taken over the management of the NCC Bank suspending
the board due to prolonged dispute among the board of directors. Likewise, in
2006, the central bank had taken over the Bank of Kathmandu and returned it
within three months. However, the central bank has failed to improve the
financial health of Gurkha Development Bank and is still managing it, without
any solution in near future.
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