HIMALAYAN NEWS SERVICE
KATHMANDU: The central bank will pull out of Nepal Bank Ltd (NBL) and Rastriya Banijya Bank (RBB)in a year. “Nepal Rastra Bank (NRB) has prepared a road-map to pull out its representatives from running the bank in a year,” said NRB Governor Dr Yubaraj Khatiwada.
The central bank is appointing a CEO, who will plan the exit of NRB representatives, he said.
NBL has been under the central bank’s direct supervision after foreign management team walked out suddenly, reportedly protesting NRB decision to extend the contract for another three months, in 2007. The foreign management was part of the financial sector reform programme that started in 2002.
The first phase of the reform programme will come to an end by this December, Khatiwada said, adding that the central bank is into negotiating with donors to start the second-phase of the reform programme.
The second-phase will be more focused on financial service expansion and consolidation, he added. However, the central bank’s decision to appoint a new CEO for NBL has attracted criticism. “When the bank is run by the board that has
no representation of all the shareholders, how can the board appoint a professional CEO,” questioned former finance minister Dr Ram Sharan Mahat here at the sub-committee under the Parliamentary committee on Finance and Labour Relations.
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