New BAFIA in the offing to facilitate M&A, says deputy governor

The central bank is considering introducing a new Bank and Financial Institutions Act (BAFIA) in the next fiscal year with the aim of facilitating Mergers & Acquisitions, says deputy governor of Nepal Rastra Bank (NRB) K.B. Manandhar.

Saying that the current number of banks and financial institutions in the country were large, Manandhar said, "We need M&A and we encourage it. The capital requirements (for the banks and FIs) have been increased in order to encourage the urge to merge."

Speaking at training-cum-workshop on M&A organised by Independent Business News (IBN), on Thursday, Manandhar said, "We expect the M&A will gain the tempo in next two, three years. We do not want legal provisions to be posing obstacle to M&A."

At the programme, PR Somasundaram, senior official of Standard Chartered Bank in India, made a presentations on M&A in Financial Services in South Asia. "It is quite clear that M&A is going to be a fact of life for Nepal," he predicted.

The programme was attended by senior bankers and entrepreneurs. nepalnews.com sd Apr 26 07