Nepal Rastra Bank Governor Details Promoter Shares, Regulatory Reforms & Financial Stability In Banks
3rd July 2025, Kathmandu
Dr. Biswo Nath Poudel, Governor of Nepal Rastra Bank (NRB), recently revealed important facts about promoter shareholding in Nepal’s banks and financial institutions. Speaking at a meeting of the Parliamentary Finance Committee on July 3, 2025, he said 373 individuals hold promoter shares across the sector.
NRB Governor Promoter Shares
Among them, 72 individuals own more than one percent of promoter shares in commercial banks. In development banks, 130 people hold promoter shares, while 171 individuals do so in finance companies. This shows a broad ownership base across Nepal’s banking and financial industry.
Flexible Approach Suggested On Founder Share Transfers
Governor Poudel addressed the regulations on the transfer of founder shares. Currently, the law requires NRB approval if more than two percent of founder shares are transferred. However, he suggested revisiting this rule.
He proposed allowing the NRB more discretion to decide on approvals. “In a dynamic economy, setting a fixed percentage in the law might not be ideal,” he explained. Instead, giving NRB the flexibility to approve or reject transfers based on the situation could be more practical.
This stance indicates a shift towards more adaptive governance in Nepal’s financial regulatory framework. Discussions are expected soon on whether to keep the two percent limit in law or empower NRB with broader authority.
Emphasis On Transparency And Discipline In The Financial System
Governor Poudel stressed the need for transparency and discipline within the financial sector. He urged authorities to closely monitor transactions involving individuals or entities connected to banks and financial institutions.
Such monitoring can help maintain accountability and reduce the risk of financial misconduct. The Governor’s call reflects the growing focus on strengthening Nepal’s banking system through improved governance and regulatory oversight.
Financial Resources As National Economic Assets
The Governor also highlighted the significant scale of resources held by Nepal’s financial institutions. He reminded that the nearly NPR 70 trillion held in banks and financial firms should not be seen as private wealth. Instead, these funds represent vital economic resources for the entire country.
He appealed to stakeholders to understand and respect this responsibility. Proper management and protection of these resources are essential for Nepal’s economic development and financial stability.
Reducing Private Interests’ Influence In Banking
Dr. Poudel underlined the importance of reducing undue private interests in the financial sector. Ensuring transparency, accountability, and good governance can help achieve this goal.
He said minimizing the involvement of private agendas in banking decisions is critical to maintaining trust and efficiency. This will also help secure the financial system against risks and potential conflicts of interest.
Future Outlook And Regulatory Discussions
The Governor’s remarks point to ongoing reforms in Nepal’s banking regulations. Granting the NRB more flexibility on founder share transfers can lead to quicker and better decision-making.
At the same time, reinforcing transparency and discipline will safeguard the sector’s integrity. The discussions on founder share ownership rules are expected to balance regulatory control with the need for a dynamic financial market.
Nepal’s financial sector is evolving, and these measures aim to support sustainable growth. Stakeholders must cooperate to ensure a stable and trustworthy banking environment.
Conclusion: Strengthening Nepal’s Financial Governance
In summary, NRB Governor Dr. Bishwanath Poudel highlighted critical issues in promoter shareholding and founder share transfer regulations. He emphasized flexibility, transparency, and accountability as key to a healthy financial system.
His call to treat financial resources as national assets underscores the sector’s role in Nepal’s economy. Moving forward, the regulatory framework is likely to adapt to better meet market dynamics and protect public interests.
These efforts are vital to enhance Nepal’s banking governance and support long-term economic progress.
For more:- NRB Governor Promoter Shares
