NRB: No perks to proposed banks' directors

Nepal Rastra Bank (NRB), the central bank of the country, has banned the directors and executive directors of proposed financial institutions from taking perks and benefits before they have received the final approval from the NRB to commence financial transactions.

A directive issued on Sunday to all banks and financial institutions has, however, allowed employees of the proposed financial institutions to receive their salaries, as per the decision taken by the proposed board of directors of the financial institutions.

According to a central bank official, the decision was taken after a number of account inspections of the newly established financial institutions showed that the institutions had incurred huge expenditures, some of which crossed well-established financial-discipline boundaries, in paying perks and benefits to board member before launching operations.

Similarly, in another bold decision, the NRB also disallowed the newly established financial institutions that have started financial transactions from raising the perks and benefits of their chief executive officer and board members before the institutions´ first annual general meeting, in which are represented general shareholders, takes place.

Similarly, the central bank also notified all concerned that the names of individuals and institutions listed by the NRB as professional experts and auditors would be removed from the list if any authorized bodies filed a court case against them. However, their names would be added again to the list of experts if the accused are able to get a clean cheat from the courts.
Source: myrepublica.org