Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has reprimanded the Chief Executive Officer (CEO) of Prime Commercial Bank Limited for violating regulatory provisions. It has also alerted the board of directors of the bank.
According to the third quarter supervision report of the fiscal year 2080/81 released by the Department of Bank Supervision, the bank was found not complying with the provisions related to credit risk classification, risk weight determination and capital adequacy.
According to the NRB, the bank has issued a Unified Directive, 2081 and EP. Direction No. It has been found that the credit risk classification has not been done as per 2/081 and the provision of maintaining the risk weight of the loan has not been followed.
Similarly, according to the Capital Adequacy Framework 2015, while calculating the risk weighted assets, the central bank has calculated the risk weight less than the actual one. According to the report, the bank did not comply with the directive given to improve the risk classification after the monitoring of the fiscal year 2081.
Based on these shortcomings, Nepal Rastra Bank (NRB) issued a notice to the Chief Executive Officer of the bank as per clause (a) of sub-section (2) of Section 100 of the Nepal Rastra Bank Act, 2058.
Likewise, the NRB has also cautioned the board of directors of the bank for failing to carry out adequate monitoring of the existing laws, bank policies, directives and regulatory provisions.
