Nepal doesn't need more than 15 commercial banks: NRB

Kathmandu, Nepal, April 25, 2022: Nepal Rastra Bank (NRB), the central bank of Nepal, has reached on the conclusion that Nepal doesn't need more than 15 commercial banks. Revealing a study report, the NRB has also stated that 15 commercial banks are adequate for the country like Nepal.

The 11 commercial banks are ideal but the number of banks can be kept up to 15, states the study reports prepared by the NRB.

The NRB reached on the conclusion to limit the number of commercial banks below 15 at the time when other concerned experts have also been indicating time and again to reduce the number of commercial banks in the country. However, neither the government nor the NRB like regulatory agencies have taken concert efforts to decrease the number of commercial banks.

It is said that eighty-one percent of survey respondents and 78 percent of bank and financial institution professionals have agreed that Nepal has more banks than it needs.

Likewise, the study has also found that South Asian countries with stronger economies than Nepal have fewer commercial banks than in Nepal. A total of 230 people, including 140 bank and financial institution CEOs and 90 specialists participated in the study.

While revealing the report, the NRB has also emphasized for the merger to minimize the number of commercial banks in the country.