Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Rastra Bank (NRB) has introduced new flexibility for banks and financial institutions by extending deadlines for publishing quarterly financial reports. The central bank’s directive, issued on Wednesday, grants an additional 15 days for fourth-quarter reports and 8 days for other quarterly reports, addressing long-standing concerns about tight reporting schedules.Previously, banks were required to publish fourth-quarter financial statements within 15 days of the fiscal year’s end. The new rule extends this to one month, by the end of Shrawan.
For the first, second, and third quarters, the deadline has been relaxed from 7 days to 15 days. The NRB mandates that these interim financial reports, including key financial indicators, be published in a national daily newspaper, with a copy submitted to the NRB’s regulation and supervisory departments. Additionally, detailed reports must be uploaded to institutions’ websites in the prescribed format, with a note in the published report confirming online availability.
The decision aims to ease the pressure on financial institutions, particularly for the complex fourth-quarter reports that require extensive audits. Industry insiders see this as a practical move to improve reporting accuracy, given the operational challenges in Nepal’s banking sector. However, some analysts warn that extended deadlines could delay transparency, potentially affecting stakeholders who rely on timely financial data.
The NRB’s focus on digital transparency through website uploads aligns with global trends but raises concerns about smaller institutions’ capacity to comply. Critics argue that the directive, while helpful, does not address deeper issues like inconsistent regulatory enforcement and bureaucratic inefficiencies that hinder Nepal’s financial sector.
Cases of fraudulent reporting, often exacerbated by weak oversight, underscore the need for broader reforms.As Nepal navigates economic challenges like inflation and foreign exchange constraints, the NRB’s move seeks to support banks’ operational stability.
However, without addressing systemic regulatory flaws, the extended deadlines may only offer temporary relief. Stakeholders will monitor whether this change enhances reporting quality or merely postpones accountability in an already strained financial system.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
