Banking Exam Question - What are the NRB Directives (2074) about Condition Regarding No Loan Issue for Collateral Against such Organization's Shares? Explain

Introduction - Following Condition Regarding No Loan Issue for Collateral Against such Organization's Shares

• Bank and financial institutions, which have not made the capital fund ratio as per the problematic announcement or instructions from this bank.
• Net worth negative institutions,
• Nepal Dealers Exchange Markets Limited, the organizations removed from listing,
• Including final auditing institutions, including completion of one year period financing,

(5) In connection with providing loan to the shares of the listed entities in the mortgage exchange market, the entire process to complete the loan and financial institutions should be given clear clearance in their loan policy / directory as per the provision of the loan.

(6) In addition to the situation in which the flow of debt is due to good debt, one percentage of loan will be made in other conditions.

(7) Bank and financial institutions can flow the nature of this nature only to the amount of their primary capital at the beginning. In addition, while providing such loans, bank and financial institutions will only have to pay only the debt to notify their primary capital at the maximum of 25 percent in the right of the shares of a company. For this purpose, the primary capital should be the primary capital to be maintained based on the financial statements of the first audit of the audit.

(8) Bank and financial institutions, which have been given more than its primary capital in the past, will not be able to flow the extra loan of such nature, unless it is set to the specified limit.