Nepal Rastra Bank (NRB) has told the House of Representatives’ Finance Committee that there is no need to issue new banking licenses right now. This decision comes after a careful review of the current banking situation and recent laws.
Earlier this year, there were talks about giving out new banking licenses. The Finance Committee asked NRB to study whether new banks are really needed. They also wanted NRB to look at how past bank mergers and acquisitions have affected the sector. NRB plans to share a detailed report by mid-October 2025.
At the same time, changes are being made to the Bank and Financial Institutions Act (BAFIA). These changes aim to improve rules, including those about digital banking and the duties of bank directors. The Finance Ministry and NRB say there is no need to rewrite the BAFIA amendment bill because it already addresses current issues.
This careful approach matches NRB’s plan to strengthen existing banks instead of creating more banks. Governor Dr. Biswo Nath Poudel has said that most loans go to a small group of borrowers. This concentration might make it harder for many people to get credit.
NRB wants to make Nepal’s banking system more efficient and fair by improving rules and thinking carefully before allowing new banks.
