Bangladeshi firm begins loan portfolio review of 10 major commercial banks in Nepal

Kathmandu: The Bangladeshi firm Howlader Yunus & Co., which was selected to review the loan portfolios of Nepal’s 10 largest commercial banks, has simultaneously begun work at all ten banks.

The firm had already started off-site data analysis before Dashain. Starting Sunday, a joint team — consisting of representatives from Nepal Rastra Bank (NRB), Nepali chartered accountants selected by Howlader, and the firm’s own representatives — began work at all 10 banks.

According to NRB, the team will collect policies, guidelines, and statistical data from all the banks before Tihar. After Chhath, on-site analysis and monitoring will be conducted.

“Currently, two representatives from the Bangladeshi audit firm Howlader, two selected Nepali chartered accountants, and representatives from Nepal Rastra Bank have begun studying the loan policies, frameworks, and related details of all 10 banks,” an NRB source said.

“After Tihar, a four-member team — including two chartered accountants recommended by the Bangladeshi firm and two representatives from the central bank — will conduct on-site inspections at each bank.”

At present, a preliminary team consisting of one NRB representative and one representative from the Bangladeshi audit firm is preparing the necessary technical groundwork and studying the policies and procedures required for on-site inspection. According to NRB, the on-site inspection will begin after Chhath once the chartered accountants selected by the firm arrive.

The Government of Nepal, while signing the Extended Credit Facility agreement with the International Monetary Fund (IMF), had agreed to conduct a loan portfolio review of the country’s 10 largest commercial banks. To fulfill the IMF’s condition of assessing the loan quality through an international auditing firm, Nepal Rastra Bank selected the Bangladeshi firm Howlader Yunus & Co.

The firm had begun its off-site work before Dashain and has now deployed teams to all 10 banks simultaneously for preparatory tasks ahead of the on-site inspections set to begin soon after Chhath.