Merger and acquisition facilities for financial institution extended till mid-January

KATHMANDU: The Nepal Rastra Bank (NRB) has extended the timeframe for the merger and acquisition of banks and financial institutions.

Unveiling the monetary policy on Friday, Nepal Rastra Bank’s Governor Maha Prasad Adhikari shared that the banks and financial institutions opting for merger and acquisition would be provided with the facilities up to mid-January next year.

Earlier, the central bank had set the deadline for merger and acquisition up to mid-July.

Likewise, the monetary policy states that the transactions of banks and financial institutions opting for merger and acquisition will not be halted.

The central bank had adopted a policy to encourage merger and acquisition of banks and financial institutions to increase their paid-up capital in order to increase their risk-bearing capacity. It has been giving tax concessions to the merging banks, cooling off period, investment in the priority sector and so on.