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NRB and IFC Join Hand to Promote Financial Development in Nepal

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NRB and IFC Join Hand to Promote Financial Development in Nepal
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May 5: Nepal Rastra Bank and International Finance Corporation (IFC) have joined hand in a bid to promote sustainable and inclusive financial development in Nepal.  The coordination between the institutions aims to boost returns on assets, generate business opportunity and to increase competitive capacity of financial sector by managing environmental and social risk.  

Organizing a program on May 3, NRB and IFC said that the coordination targets to mitigate risks of banks and financial institutions (BFIs) through best risk management practices. IFC opined that the practice will facilitate in building environment friendly social development. For that matter, it is expected that the IFC will help NRB and BFIs to implement environmental and social risk management principles.

In the program, representatives of government, IFC and private sector discussed about developing good risk management mechanism. “NRB wants BFIs to be capable of mitigating risks related with environmental and social development. The central bank also wants BFIs to contribute in building environmental and inclusive social development,” said Shiva Raj Shrestha, Deputy Governor of NRB in the program. Therefore, BFIs should collectively build effective risk management system, he opined.

Rehan Rashid, IFC Resident Representative of IFC stressed that the BFIs should consider environmental and social aspect while evaluating projects for investment. He opined that doing this, BFIs can raise their return on investment. 

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