Task force suggests classification of names of banks and financial institutions

लगानी न्यूज

९ पुष २०८२, बुधबार १२:५७December 24, 2025

Kathmandu. KATHMANDU: A task force formed for banking sector reform has suggested changing the existing classification system of banks and financial institutions.

The task force has concluded that the A, B, C and D classifications currently in use should be replaced as it sends a positive and negative message about the quality and status of the organization.TAG_OPEN_div_12

According to the report of the task force, the psychological impact of ‘A’ being good and ‘D’ being weak has on the market, depositors and investors.TAG_OPEN_div_10 The task force concluded that this has created unnecessary disparity among financial institutions and also created a situation of distrust towards some institutions. Therefore, the task force has suggested adopting a clear and action-oriented classification of commercial banks, development banks, finance banks and microfinance banks instead of A, B, C, D.

It is expected that the financial system will become more transparent and trustworthy as the scope of the organization, risk bearing capacity and regulatory structure will be clear on the basis of the name

. For this, Nepal Rastra Bank and the bodies concerned should take initiative to make necessary amendments to the Bank and Financial Institution Act.