Nepal: Technical Assistance Report—Financial Sector Stability Review

International Monetary Fund

No 2023/344, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Assistance (TA) paper on Nepal highlights the financial sector stability review. The mission conducted a diagnostic review of the financial sector oversight capacity and proposed a Technical Assistance Roadmap (TARM) to support the authorities’ efforts to strengthen the identification, analysis, and mitigation of risks to financial stability in Nepal. The Nepal Rastra Bank has developed its approach to supervision and continuing to strengthen its capacity will help improve the resilience of the banking sector. Payment systems modernization efforts have gained momentum, but further progress is needed to improve the safety and efficiency of payment systems to support monetary policy and financial stability. Financial sector statistics in Nepal have scope for improvement. Currently, the monetary and financial statistics cover the central bank, and other depository corporations comprising of commercial banks, development banks, and finance companies, which accept deposits. The mission’s diagnostic review supports a TA plan. The main recommendations are summarized and the comprehensive TARM is provided in this paper.

Keywords: working capital; Nepal FSSR TA roadmap; liquidity regulation; request of the Nepal Rastra Bank; NRB regulation; payment legislation; NRB senior management; IMF to IMF executive directors; IMF MCM; macro-financial risk; payment Systems Department; modernization effort; NRB staff; Payment systems; Stress testing; Real time gross settlement systems; Financial sector stability; Global (search for similar items in EconPapers)
Pages: 68
Date: 2023-10-06
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