Kathmandu: The World Bank has approved a USD 30 million credit to help Nepal accelerate its financial sector reform programme with a view to reducing vulnerability of the banking sector and increasing its transparency.
Nepal`s medium-term programme for the financial sector focuses on reforms designed to place the financial sector on a sound foundation for the future, according to a statement issued by World Bank Nepal office.
The Nepal Financial Sector Stability Credit will support six main policy areas which includes formulation of a financial sector development strategy; restructuring of two government owned commercial banks, Nepal Bank Ltd and Rastriya Banijya Bank, the statement said.
Strengthening the legal and regulatory framework for effective bank resolution and increasing the transparency of the financial system, it said.
"The proposed credit recognises the important progress made so far by the Nepali authorities to tackle financial sector vulnerability and supports the acceleration of a medium term reform strategy which commenced implementation in 2011," said Johannes Zutt, World Bank Country Director for Nepal.
This Development Policy Credit has been prepared in close collaboration with the IMF and Britain`s Department for International Development, which has recently approved a long term technical assistance package to support financial sector reforms in Nepal.