The central bank is pulling out of the Nepal bank Ltd's (NBL) management in a year.
"Nepal Rastra Bank (NRB) has prepared a road-map to pull out its representatives from running the bank, in a year, as there is a chance of conflict of interest if the central bank continues to run the NBL," according to the central bank governor Dr Yubraj Khatiwada.
The central bank is appointing a chief executive officer (CEO), who will prepare the plan for exit of the central bank, holding an annual general meeting in a year, he added.
NBL has been under the central bank's direct supervision after the foreign management team of the Bank of Scotland (Ireland) Ltd, ICC Consulting decided to walk out suddenly, unhappy over NRB’s decision to extend the contract for another three months, in 2007.
The NBL management contract to the foreign management was part of the financial sector reform programme that started in 2002.
The donors including World Bank and DFiD-funded Financial Sector Technical Assistance Project (FSTAP) has suggested to reengineer the NBL and Rastriya Banijya Bank (RBB).
Though, there has been a debate on either the reform programme became successful or not, the first phase of the reform programme will come to an end by this December," Khatiwada informed, adding that the central bank is into negotiation with the donors to start second phase of reform programme.
The second phase will be more focised on financial service expansion and consolidation, he added.
However, the central bank's idea to appoint CEO in the NBL at present condition has raised eyebrow. "When the bank is run by the board that has no representation of the all shareholders, how can the board appoint the professional CEO," questioned former finance minister Dr Ram Sharan Mahat here at the sub-committee under the Parliamentary committee on Finance and Labour Relations.
The sub-committee -- led by Constituent Assembly (CA) member Hari Rokka -- has also asked the finance secretary Rameshwor Khanal to assure the professionality and impartiality before appointing the CEO.
"Earlier too, the bank's financial health deteriorated due to political bickering," Mahat added.Though NBL’s 61 per cent stake is owned by the private sector and bank employees, it is declared as a troubled bank and its board has representatives appointed by the central bank. The private shareholders have no representation in the board of directors at present.
The government has also been extensively holding interaction on the future road-map of the bank and FSTAP as a whole.
NBL has 4.89 per cent NPA and Rs 4.77 billion negative core capital, whereas RBB -- the other bank under the FSTAP -- has 9.81 per cent NPA and Rs 10.05 billion negative core capital at present.
Showing posts with label Nepal Radtra Bank. Show all posts
Showing posts with label Nepal Radtra Bank. Show all posts
Tuesday, December 28, 2010
Tuesday, February 16, 2010
10-Point carta wraps up Microfinance Summit
With a 10-point declaration, the second Microfinance Summit concluded here today.
In the closing session of the last day of the three-day summit, Centre for Microfinance president Dr Haridev Pant read out the 10-point declaration.
"In the first summit, we had targetted to bring three million people within the reach of microfinance sector by 2015," he said adding that by now 1.8 million Nepalis are involved in the sector. "We are pretty much on track," he added.
The declaration also urged various sectors to contribute to make this endeavour successful and ensure economic growth of the country in order to alleviate poverty.
The declaration also stated that in order to bring about national development, the microfinance sector should be given priority as a primary sector. Microfinance is the only tool to uplift the life standards of the poor. He also requested for a reduction in taxes as the tax on microfinance institutions is as high as that for commercial banks.
The summit also requested the Finance Ministry to support it in inclusive economic development. "Microfinance institutions have been facing problems due to conflict in the Tarai region," it said. Mountainous and hilly regions are yet at a low reach from the sector due to geographical reasons and high costs.
Former finance ministers Dr Ram Sharan Mahat and Bharat Mohan Adhikari also took part in the last session held today.
The summit also requested Nepal Rastra Bank (NRB) for a microfinance policy that would allow the sector to mobilise deposite as it has been facing resource crunch. The sector is also looking to form a unified network to promote its concerns via advocacy and deliberations.
Some 722 people involved with microfinance took part in the second edition of the Microfinance Summit, where 19 working papers were presented. It also reviewed the progress made in the field after the first summit. The third Summit will be held in 2013.
In the closing session of the last day of the three-day summit, Centre for Microfinance president Dr Haridev Pant read out the 10-point declaration.
"In the first summit, we had targetted to bring three million people within the reach of microfinance sector by 2015," he said adding that by now 1.8 million Nepalis are involved in the sector. "We are pretty much on track," he added.
The declaration also urged various sectors to contribute to make this endeavour successful and ensure economic growth of the country in order to alleviate poverty.
The declaration also stated that in order to bring about national development, the microfinance sector should be given priority as a primary sector. Microfinance is the only tool to uplift the life standards of the poor. He also requested for a reduction in taxes as the tax on microfinance institutions is as high as that for commercial banks.
The summit also requested the Finance Ministry to support it in inclusive economic development. "Microfinance institutions have been facing problems due to conflict in the Tarai region," it said. Mountainous and hilly regions are yet at a low reach from the sector due to geographical reasons and high costs.
Former finance ministers Dr Ram Sharan Mahat and Bharat Mohan Adhikari also took part in the last session held today.
The summit also requested Nepal Rastra Bank (NRB) for a microfinance policy that would allow the sector to mobilise deposite as it has been facing resource crunch. The sector is also looking to form a unified network to promote its concerns via advocacy and deliberations.
Some 722 people involved with microfinance took part in the second edition of the Microfinance Summit, where 19 working papers were presented. It also reviewed the progress made in the field after the first summit. The third Summit will be held in 2013.
Wednesday, March 18, 2009
Changed spending pattern makes NRB review CPI
Nepal Rastra Bank, the central bank, has started reviewing the Consumer Pricer Index (CPI) -- the main gauge of inflation -- as the pattern of spending on consumer goods has changed dramatically over the last one decade.
"We are reviewing the present basket of 301 goods and services that is an indicator of price hike," Trilochan Pangeni, executive director at the Research Department of Nepal Rastra Bank (NRB) said. The department is responsible for the collection and compilation of the CPI that is published every month.
"However, it will take a year to complete the review process and finalise the new basket," he said adding that since the CPI was formed the expenditure pattern of Nepali consumers had changed. The spending pattern changed drastically thanks to remittance sent by migrant workers.
Remittance has contributed to not only change in lifestyle but has also fuelled consumerism, said Pangeni. "The living standards of the rural populace has gone up and people there have also started spending on better education for their children. Nowadays, they send their children to boarding schools instead of government ones." A review is required for wider coverage, he added.
The consumer price index (CPI) is a measure of the average price of consumer goods and services purchased by households. It is an index determined by measuring the price of a standard group of goods meant to represent the typical market basket that includes 301 goods and services and applied to the typical urban consumer.
It is one of several price indices calculated by the central bank. The per cent change in the CPI is a measure of inflation. The CPI can be used to index -- adjust for the effects of inflation -- wages, salaries, pensions or regulated or contracted prices.
The price data are collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times. The weight data are estimates of the shares of the different types of expenditure as fractions of the total expenditure covered by the index. These weights are usually based upon expenditure data obtained for sampled periods from a sample of households.
The CPI is one of the most closely watched national economic statistics that is published every month by the Research Department of NRB, according to which the first six months' price hike stands at 14.4 per cent.
"We are reviewing the present basket of 301 goods and services that is an indicator of price hike," Trilochan Pangeni, executive director at the Research Department of Nepal Rastra Bank (NRB) said. The department is responsible for the collection and compilation of the CPI that is published every month.
"However, it will take a year to complete the review process and finalise the new basket," he said adding that since the CPI was formed the expenditure pattern of Nepali consumers had changed. The spending pattern changed drastically thanks to remittance sent by migrant workers.
Remittance has contributed to not only change in lifestyle but has also fuelled consumerism, said Pangeni. "The living standards of the rural populace has gone up and people there have also started spending on better education for their children. Nowadays, they send their children to boarding schools instead of government ones." A review is required for wider coverage, he added.
The consumer price index (CPI) is a measure of the average price of consumer goods and services purchased by households. It is an index determined by measuring the price of a standard group of goods meant to represent the typical market basket that includes 301 goods and services and applied to the typical urban consumer.
It is one of several price indices calculated by the central bank. The per cent change in the CPI is a measure of inflation. The CPI can be used to index -- adjust for the effects of inflation -- wages, salaries, pensions or regulated or contracted prices.
The price data are collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times. The weight data are estimates of the shares of the different types of expenditure as fractions of the total expenditure covered by the index. These weights are usually based upon expenditure data obtained for sampled periods from a sample of households.
The CPI is one of the most closely watched national economic statistics that is published every month by the Research Department of NRB, according to which the first six months' price hike stands at 14.4 per cent.
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