Bank Shareholders Owing above 0.5% Shares Deprived from Borrowing

Oct 09, 2024 01:54 PM Merolagani



Nepal Rastra Bank (NRB) has restricted shareholders who own above 0.5 percent shares of any particular bank from borrowing from the same bank.

Issuing circular on October 8, the central bank said that ‘The banks are restricted from providing loans against the collateral owned by promoter shareholders who own above 0.5 percent shares, shareholders who one above 1 percent shares, directors, Chief Executives and their family members from the same bank.’

Similarly, the banks are required to send details of shareholders owing above 0.5 percent shares on half-yearly basis to the supervision department of NRB.  




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