NRB stops accepting applications for new banks

Nepal Rastra Bank has stopped accepting application for opening new commercial banks and other financial institutions. The central bank officials stated that they had stopped registering new applications, as the central bank is reviewing the existing policy and processes related to the establishment and licensing of the banks and financial institutions.

However, the NRB will accept applications on establishing the category ´D´ financial institution by the commercial banks, development banks and finance companies for the purpose of operating deprived sector lending, as provisioned in the new monetary policy. NRB has said that its latest decision will not impact applicants who have already deposited 5 percent of the paid up capital and whose applications have already been publicly accepted.
Source: Republica
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NRB Loosens the Leash on Promoter's Shares

Nepal Rastra Bank (NRB) has also allowed D class financial institutions to reduce their promoter's shares to 51 percent from the existing 70 percent. According to the latest directive of the central bank, the remaining 19 percent of the promoter's shares can be traded in the secondary market like ordinary shares.

A, B and C class financial institutions already enjoy this privilege. The central bank has also prohibited financial institutions from diverting the additional 25 percent investment ceiling to other sectors except power generation, transmission lines and cable cars.

"Otherwise, they will have to make cent percent provisioning of the loans exceeding the ceiling," the directive states. Financial institutions cannot invest more than 25percent in a single portfolio except the hydropower sector, according to the existing legal provisions.

"We issued the new directives to make it clear to the financial institutions that the additional facilities are not to allow them to divert funds to other sectors except the three particular sectors related to hydropower," said Laxmi Prapanna Niraula, director of NRB. Likewise, the central bank has also specified how promoters can transfer the rights shares to others.

According to the NRB directive, prospective promoter shareholders should possess the qualifications set by NRB, they should not have been blacklisted by the Credit Information Bureau and they should disclose the source of funds.

Financial institutions can transfer the rights shares themselves by making a provision in the memorandum of association and their regulations if promoters desiring to transfer their shares hold 1 percent or less of the company's stock. Those who hold more than 1 percent of the promoter's shares should obtain an OK from NRB. If the rights shares are being transferred to the existing promoters, financial institutions can do it on their own following the existing NRB directives.
Source:
The Kathmandu Post
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ICC-Nepal to participate the 6th World Chamers Congress

International Chamber of Commerce-Nepal (ICC-Nepal) treasurer Chandra Dhakal is participating in the 6th World Chambers Congress at Malaysia, which started from 3-5 June, 2009.

A press statement of ICC-Nepal said that the 6th World Chambers Congress is a forum for a huge meeting of the world business entrepreneurs, which comes in the interval of every two years.

Chambers Leaders from various Countries exchange their experiences; build network and address the problems seen in their business communities at this forum.

The meeting is organized by ICC World Chamber Federation (WCF). Over 14,000 chambers from across the world participate in this congress.

Mr. Dhakal said that the World Chambers Congress is extensively discussing the issues of international property, women and business, good governance, social responsibility, public private sector, customer service, chambers and governments working together, ICC arbitration, certification of origin among others.
Source:
Jambnews Service
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Economic Transformation, major agenda: NCC

A private sector delegation led by Nepal Chamber of Commerce President Mr. Surendra Bir Malakar urged the government to provide a unique code, as PAN number, to every citizen, to bring them under tax net.

While making an extensive discussion with the newly appointed Finance Minister Mr. Surendra Pandey, Mr. Malakar suggested the government to revise the existing labour policy for industrial development through attracting foreign investors.

The business community also urged the government to give continuity to the programmes initiated by the previous governments. During the meeting, private sector highlighted its various problems and asked the minister to pay attention to them.

Responding on the private sector delegation, Mr. Pandey said that the government was committed to promoting Public-Private Partnership (PPP) to take the country toward economic prosperity.

“Prioritizing economic transformation in the country is the major agenda as the country had passed through a drastic political change. This is possible only through PPP model,” Mr. Pandey said.

Lauding role of the private sector in expediting up economic development in the country, Mr. Pandey said that the progress of private sector meant progress of the country.

He said that the revenue expenditure of the country would help increase economic activities.
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