Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) is going to identify important banks and payment systems in the financial system. In the monetary policy for the current fiscal year, the bank has included the issue of identifying systemically important institutions in both the bank and the payment system.
Rastra Bank will identify the bank as a systemically important bank, which is large in terms of transaction amount and has a significant share in the total transactions of the entire bank financial institution.
If the financial condition of the identified bank collapses or the service is blocked, then the services of the entire banking sector will be affected, so the regulator supervises such banks more closely.
It has also been stated in the monetary policy that the domestic systemic important bank framework will be issued and implemented to implement additional arrangements of regulation and supervision in the identified banks.
Apart from this, a framework will also be prepared to identify important payment systems for effective monitoring by identifying systemically important payment systems.
State Bank of India, ICICI Bank and HDFC Bank are systemically important banking institutions in neighbouring India. Similarly, The National Payment Corporation of India is a systemically important payment system in India. These institutions are closely monitored by the Reserve Bank of India.
Apart from this, LIC, General Insurance Corporation of India (GIC) and New India Insurance Company are systemic important insurers. The Insurance Regulatory and Development Authority has been closely supervising these insurance companies.
