Nepal Rastra Bank (NRB) is the Central Bank of Nepal and regulatory body of commercial bank and financial institutions. One of the NRB’s objectives as set out in NRB Act, 2002 is to maintain financial stability. In order to achieve this objective, NRB has issued 23 directives to Banks and Financial Institutions. Out this, directives no. 2, 3 and 12 are related to credit management, single obligor limit and blacklisting requirement. These directives are most important for credit department and revisions/amendments in these directives are made annually.
Completed Programmes
Risk has been increasing day by day in the Nepalese Financial Sector and large risks events are taking place one after another. INR Draft events taken place in Kathmandu, good for payment incident happened at one of the development banks and remittance fund embezzlement case incurred at one of the large commercial banks are the examples of a few incidents.
On recommendation from the Accounting Standards Board (ASB), the Institute of Chartered Accountants of Nepal (ICAN) in its Council
meeting held on 13 September 2013 decided to announce the roadmap for implementation of Nepal Financial Reporting Standards (NFRS) including its interpretations. As per the said announcement, Commercial Banks, including State Owned Commercial Banks (Class ‘A’) are required to fully implement NFRS from 2015/16.
Role of the Board of Directors (BoD) is paramount in driving the Bank by maintaining high standard of corporate governance, safeguarding the interest of the depositors and meeting the expectations of the stakeholders.
Whilst BoD delegates the authority to the Director(s), CEO or any other officials, the ultimate responsibility lies on them, which is substantiated by NRB Directives No 6/072, Section No 2 (e).
The program aims to equip participants with sound knowledge on banking operations. Upon the completion of the course the participants will gain knowledge and skills that are very essential to be efficient in their field of work. This program will help participants get an overall concept of a bank’s working procedures. The participants will be able to:
1. Understanding the meaning and definition of credit
2. Structuring of the loans
3. Writing of credit proposal
Due to the globalization of the economy, commercial banks are expanding their nationwide presence. The retail business is another important source of banking revenue, offering high margin transactions, a low non-performing loan ratio, risk diversification, and a low risk of default. Although self-service banking (automated teller machines) and internet banking offer customers convenient real-time access, branch banks provide more convenient and people-friendly service.
The banking & financial institutions in Nepal has seen exponential growth. The competitive market has stretched the limits of customer numbers. To tackle these issues, excellent customer service and innovative marketing of one’s banking products becomes essential. With this in mind NBI brings to you “Customer Relationship Management”. This program aims to deliver the best course content with consultation with the industry experts.
The country received the inward remittance of about Rs 550 billion in In FY 071/72 only, which is about 20% on the total GDP of the country. Notably, Nepal is ranked in the 7th Position in terms of remittance's contribution in the GDP.
Whilst the inward remittance is contributing significantly in the economy and enabling to uplift the life standard of people and supporting BFIs to increase FCY trading / revaluation gain and fee income, many operational risk events are also taking place along with increase in remittance business.
Banks were much concentrated on large ticket corporate loans in the past for the maximum profitability by managing very limited resources. It was considered that the SME Loan requires high operating cost in comparison to return. Now the time has changed and banks have been focusing on high volume small ticket SME loans and also focusing with new approaches and strategy to capture this business. SME customers presents one of the greatest opportunities for banks to pursue growth and profitability; at the same time it represents substantial credit risk also.
Cards, online banking etc. are the new manners of transaction on these days, but the importance of signature on cheques and other papers are still as before. Sometimes a single signature carries millions of dollar. Also in Nepalese banking scenario, withdrawal money with forged signature is becoming a normal event. And rapidly growing crude trade of counterfeit currency is the great threat to economy. This program leads the knowledge of signature verification with preventive measures to embossed, traced, simulated, scanned etc.
Operational Risk has been increasing day by day in the Nepalese Financial Sector and large risks events are taking place one after another. INR Draft events taken place in Kathmandu, good for payment incident happened at one of the development banks and remittance fund embezzlement case incurred at one of the large commercial banks are the examples of a few incidents.
Operational Risk has been increasing day by day in the Nepalese Financial Sector and large risks events are taking place one after another. INR Draft events taken place in Kathmandu, good for payment incident happened at one of the development banks and remittance fund embezzlement case incurred at one of the large commercial banks are the examples of a few incidents.
The program aims to equip participants with sound knowledge on banking operations. Upon the completion of the course the participants will gain knowledge and skills that are very essential to be efficient in their field of work. This program will help participants get an overall concept of a bank’s working procedures. The participants will be able to:
1. Understanding the meaning and definition of credit
2. Structuring of the loans
3. Writing of credit proposal
Risk Based Internal Auditing (RBIA) is a audit methodology that links an organisation's overall risk management framework and allows internal audit function to provide assurance to the board that risk management processes effectively, in line with risk appetite define by the Bank.
The Basel Core Principle for Effective Banking Supervision, and Basel/OECD Corporate Governance Principles of Banks requires the internal audit function to conduct the RBIA.
· Understanding how a BFI can take business and AML/CFT together
· Understanding how a BFI can best expand business together with AML/CFT compliance
· Understanding how AML/CFT help expanding business
· Understanding how minimum resources and staffs can work on AML/CFT
· Understanding how a BFI can best implement the newly amended but rigorous laws with limited resources