BIS issued “Basel III: A Global Regulatory Framework for more Resilient Banks and Banking System” in 2010, in order to strengthen global capital and liquidity rules with the goal of promoting more resilient banks. The reform was a response to financial crisis 2008 and to improve the banking sectors ability to absorb the loss on a going concern basis.
Accordingly, NRB issued directives to Commercial Banks to maintain their capital adequacy ratio as per New Capital Adequacy Framework designed based on Basel III requirement.
After 5 years of successful implementation of Capital Adequacy Framework 2015, NRB requires National Level Development Banks to maintain their capital adequacy ratio based on new capital accord. Monetary Policy of fiscal year 2020/21 has announced the policy and NRB issued a circular to National Development Banks to implement New Capital Accord on parallel basis during the fiscal year. This program has been designed to impart knowledge on New Capital Adequacy Framework.
