The merger and acquisition of the BFIs would be made further effective as the institutions were getting stronger after implementation of the Merger and Acquisition Guidelines.

Nepal Rastra Bank Governor Dr Chiranjibi Nepal said that the central bank has taken the policy of increase the amount of paid up capital for the development of BFIs adding that merger and acquisition would be further encouraged.

The total number of BFIs has deceased but the branches have increased after the merger and acquisition of the banks and financial institutions.

Till the end of the 2072/073 fiscal year, 78 banks and financial institutions have merged to become 30.

Currently, a total of 195 BFIs including 30 ‘A’ class banks, 79 ‘B’ class banks and 50 ‘C’ class banks are into operation. Likewise, the number of ‘D’ class licensed BFIs has reached 36.

Similarly, the monetary policy unveiled by the central bank has encouraged the micro finances to go for the merger. RSS