Nepal Rastra Bank Prepares to Implement Basel

Nepal Rastra Bank (NRB) is advancing the full implementation of the Basel III framework. As per the current monetary policy, the Bank and Financial Institution Regulation Department has released the ‘Basel Framework on Liquidity Standards’ for feedback. It ensures liquidity through the Liquidity Coverage Ratio (LCR), mandating high-quality liquid assets (HQLA) to cover 30 days of cash outflows. Commercial banks can manage liquidity using government bonds and deposits. Reporting began in 2024, with financial statement publication required from July 2025. Full implementation is targeted by 2028.