Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) has issued revised guidelines on expected loan loss for licensed banks and financial institutions.
The provisions of the NFRS new by the Rastra Bank in the last financial year 2081. It has directed all banks and financial institutions to implement it from the financial report of 82.
Rastra Bank has issued a draft guideline to implement the provisions of NFRS on expected loan loss in order to maintain uniformity in the financial report despite the inherent responsibility of the board of directors and higher managerial level of the bank financial institution.
Although the Institute of Chartered Accountants of Nepal (ICAN) had announced that it would be implemented from July 17, 2021, it could not be implemented due to the corona epidemic, limited time frame and lack of technical expertise. It was postponed until 81. O
According to the NRB, the guidelines are based on international good practices and guidelines issued by regulators of different countries.
Banks and financial institutions that have already implemented the expected loan loss model NFRS 9 (or its equivalent IFRS 9) for measuring losses before issuing these guidelines, must, as mandated by other jurisdictions, seek prior approval from the Department of Bank and Financial Institutions Regulation, Nepal Rastra Bank, if there is any difference from the provisions mentioned in this guideline. While obtaining approval, a detailed implementation timeline should also be mentioned regarding compliance with the provisions of the guidelines.
