Kathmandu: Nepal Rastra Bank has announced a significant shift in its lending regulations, stating that limits on share-based loans will henceforth be determined by the overall financial strength and stability of the respective institutions. This strategic update was unveiled during the presentation of the Monetary Policy for the upcoming fiscal year 2083/84, signalling a move toward a more risk-weighted and performance-based approach to margin lending.
The central bank has introduced a comprehensive set of measures aimed at modernizing credit practices and providing relief to various economic sectors. Key initiatives include a plan to eliminate the practice of creating unlimited liability through personal guarantees in loan security, alongside efforts to reduce the frequency of blacklisting due to check bounce cases. These reforms are intended to minimize barriers to banking services and foster a more equitable lending environment for borrowers.
Furthermore, the new policy outlines specialized strategies for managing non-performing loans in troubled industries and revitalizing stressed assets that are currently under significant financial pressure. In a bid to support sustainable infrastructure, the central bank also announced it would facilitate more favorable Loan-to-Value ratios for large electric vehicles used as public transportation. By linking share loan ceilings to institutional robustness while easing credit access for public-interest sectors, the regulator aims to ensure both financial stability and targeted economic support.
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