Poor corporate governance in banks major problem: NRB

Even though the Nepal Rastra Bank (NRB) has issued directives on corporate governance, poor culture of corporate governance in banking organizations has become a serious concern to the supervisor, said acting NRB Governor Krishna Bahadur Manandhar.

“The practice of public disclosure is yet to be effective to the extent desired,” said he, adding that the problem probably exists in almost all countries of the developing world.

While citing that the challenges faced by Nepali bank supervisors are similar to those faced by their counterparts in other developing countries, Manandhar said that the problem of information disclosure was deeper in Nepal as its accounting, financial reporting and auditing practices are yet to be fine-tuned and made compatible with international norms.

Manandhar said this while inaugurating the “First SEACEN-CTCBC/Deutsche Bundesbank Intermediate Course on Banking”, which kicked off in the capital Tuesday. The 5-day training has been organized by NRB.

According to a statement, 33 officials from the central banks of 10 countries like India, South Korea, the Philippines, Indonesia, Thailand and Bangladesh, among others, have participated in the training.