Kathmandu, June 6, 2013
—IFC, a member of the World Bank Group, is working to ensure banks understand sound risk management practices so that they can assess and control business risks, promoting sustainable growth of banking and a stable financial system in Nepal.
As a part of this initiative, IFC has guided 30 senior executives of leading Nepali banks on how to assess key risks and tackle these using global best practices. The initiative will help sharpen the skills of the bankers in dealing with all kinds of risks – credit, operational, market, asset liability management, liquidity and capital management.
“Banks are now facing a volatile situation due to multiple risks threatening the sector,” said Bhaskar Mani Gnawali, Executive Director or Nepal Rastra Bank’s Banks and Financial Institutions Regulation Department. “IFC’s initiative will help Nepali banks reduce risks, or take risks knowingly to exploit business opportunities, so that banks become sustainable and resilient.”
IFC’s global risk management specialist, Cameron Evans, who is leading this initiative, updated the participants about global financial crisis and its implications, including Integrated risk management structures and processes, risk governance and regulations. The central bank of Nepal has recently stressed the need for increased risk awareness and sound industry-wide risk management practices to ensure stability in the banking sector.
Valentino S. Bagatsing, IFC’s Resident Representative in Nepal, said, “Sustainable access to finance is critical for the private sector growth. Banks in Nepal can benefit from IFC’s global expertise in financial risk management to improve profitability and performance.”
IFC’s Access to Finance Risk Management Advisory program provides technical assistance to the financial sector globally to develop robust risk management systems, assisting in implementing risk management best practices in emerging markets in particular. The program also supports regional advisory and investment programs to appraise risk management systems and to help strengthen monitoring of loan portfolio.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, IFC investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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