Central bank scraps licenses of 171 BFIs

KATHMANDU, NOVEMBER 22: Nepal Rastra Bank (NRB) has scrapped the licenses of 171 banks and financial institutions (BFIs)  till the Nepali month of Ashwin (Sep 17 to Oct 8).  It did so in conjunction with the Merger and Acquisition Bylaw. This very bylaw was promulgated by the central bank a decade back with an aim to consolidate stability in the country's financial system. 

With the license annulment of the above-mentioned BFIs,  the number of such institutions not stands at 68.  After the introduction of the bylaw,  a total of 247 BFIs have already completed the process of merger and acquisition. 

Currently, more than a dozen of commercial banks and one-and-a-half dozen of microfinance companies are engaging themselves in the very process. After its completion, the licenses of more BFIs will be scrapped.