User:Dave4471/Nepal Rastra Bank

Article Draft

Article body

Logo

the International Finance Corporation (IFC) and Nepal Rastra Bank collaborate

International Finance Corporation (IFC) is a division of World Bank Group, and the central bank of Nepal is called Nepal Rastra Bank. They collaborate to develop and work on specific projects. Those projects mainly help to establish environmental and social risk management protocols. They aim to increase portfolio investment, enhance competitiveness within different parts of areas, encourage business investment and opportunities, and improve risk management practices by reducing the risk of financial situations and facilitating more approaches to finance social and environmental businesses. Under the supervision of IFC, Nepal Rastra Bank provides support to financial institutions in different areas of Nepal through applying various social and environmental rules, regulations, and guidelines. Later day the workshop was held on Kathmandu to facilitate discussion among government officials and different characteristic financial institutions and global organizations. During this period, risk management capabilities have been increased in the different financial organization.

Nepal Rastra Bank's Deputy Governor highlighted the value of financial institutions participating to create robust environmental and social management frameworks to manage risks and support environmentally friendly businesses. Aiming to maximize advantages of its membership in IFC's Sustainable Banking Network (SBN), Nepal Rastra Bank attempts to find green investment and standardize sustainable finance policies. IFC's Representative says that attention to the opportunity for financial institutions to build up their portfolios by conducting thorough risk assessments, accenting on environmental and social factors. Nepal, a most important country for IFC, remains a focus for sustainable energy access, financial inclusion, tourism infrastructure development, and job creation. As of June 30, 2016, IFC's investment portfolio in Nepal was greater than $50 million, illustrating a dedication to fostering inclusive private sector development in different parts of the country.

Collaboration between Nepal Rastra Bank and the State Bank of Pakistan

Nepal Rastra Bank and the State Bank of Pakistan signed the Memorandum of Understanding to collaborate on the transaction. The greatness of financial institutions affects the long-term and short-term economic increase in Nepal. The results indicate a connection between economic growth and financial depth, with domestic credit to the private sector playing a notable role in both the long and short terms. Also, there are positive effects of money supply and financial deposits on long-term growth, serving to corroborate the finance-led growth hypothesis. It suggests policies that reinforce the effective allocation of credit to benefit projects for continuing growth in both the short and long terms. Moreover, it proposes applying expansionary fiscal and monetary policies, promoting long-term deposits, to increase long-run growth in Nepal.