Monetary Policy offers nothing
KATHMANDU: Monetary Policy has neither good nor bad news for the investors. The closely watched policy document announced yesterday by Nepal Rastra Bank (NRB) could have a huge impact in the Nepse as the domestic capital market has over 85 per cent contribution of banks and financial institutions. But the Monetary Policy didnot increase the paid-up capital — as expected by some investors — of the banks and financial institutions. “The limit of minimum level of paid up capital has been kept unchanged,” the Monetary Policy said adding that nowonwards, the base for increasing capital of licenced banks and financial institutions by the NRB will be their capital fund. The capital fund includes core capital and supplementary capital. The minimum level of paid up capital — that is kept unchanged according to the policy — is Rs 2 billion for commercial banks, Rs 640 million for development banks and Rs 200 million for finance companies. Only few banks like Nepal Investment Bank and Kist Bank have increased their minimum level of paid up capital but others have yet to increase their paid up capital by the end of 2010.