Introduction - Regulation of Banking Sector
The government of every country has created many rules to protect the interests and deposits of the people. As Nepal is a central bank in the form of a central bank, it will apply to the rules of banking rules. Also, also enforce policy rules. Because Nepal is not able to establish any branch or its branch without the approval of Nepal National Bank. The nation is the highest body of the country's financial sector. It inspects, supervises and directs each bank and financial institution. This helps to strengthen financial sustainability through effective regulation.
Why should the banking system be regulated?
- For depositing public deposits (such as not to stumble money, control falsehood, do not let wrong management)
- To control inflation,
- In order to flow the necessary debt,
- Loan on minimum interest rate,
- For the institution
- To maintain public confidence,
- Not limited to the limited person,
- To provide taxes and other services to the government.
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