Friday, March 13, 2009

Banking Audit- Knowledge to be updated (NRB circulars)

Extracts of Important Circulars Issued By Nepal Rastra Bank :

1. Promoter share holders are permitted to invest in right share of

the institution in advance provided the stipulated conditions

regarding general meeting, uses of fund and proper accounting

has been followed.

2. The Conditions to be fulfilled by the banks/financial institutions

for merger and acquisition or up gradation of the institution has

been issued by NRB in addition to the existing requirements. It

focuses on requirement of duly filled form, capital adequacy

requirements, financial performance of last five years, non

performing assets and other requirements as mentioned.

3. All types of Shares, other than initial public offer, issued to foreign

or indigenous promoter, promoter group and private placement

are considered to be the promoter/promoter group shares for

the purpose of regulatory application of Nepal Rastra Bank.

4. NRB has also implemented Basel II by making it as friendly as

possible in context of Nepal. Due to this the provisions regarding

capital adequacy and risk weighted assets has been amended

making the core capital ratio rise to 6% and total capital ratio to

be maintained at minimum of 10%. The risk has been assigned

from 0% to 150% and reporting requirements has been made

compulsory on monthly basis as compared to previous

requirement of quarterly reporting


 

Compiled by "Pasang C.Lama" Ca Finals

Chungs.lama@gmail.com

Contact no :- 9841 33 99 41

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