Kathmandu. Nepal Rastra Bank (NRB) has introduced a new provision for share loans.

The government has amended the Integrated Directive 2082 for banks and financial institutions and brought a new provision on share mortgage loans.

According to the new system, a product paper will have to be prepared.

According to the directive, the licensed institution should adopt the method of evaluating the strength of the institution by including at least the following factors while preparing the product paper.

On the basis of strength evaluation, the loan value ratio of the shares of the institution having a high valuation should be increased by a maximum of 10 percentage points.

Similarly, the size of the paid-up capital, minimum period of listing of securities, the status and duration of profit and dividend distribution, credit rating, compliance with the regulatory provisions, whether or not the regular general meeting has been held or not and such product paper should be displayed on its website.