NRB Puts 10 Banks Under Systemic Watch: New D-SIB Rules Unveiled

Nepal Rastra Bank has identified 10 major Domestic Systemically Important Banks (D-SIBs) and introduced a new regulatory framework to safeguard the financial system.

Developed in line with lessons from the 2008 Global Financial Crisis and the standards of the Basel Committee on Banking Supervision (BCBS), the framework aims to prevent any bank from becoming “too big to fail” by reducing systemic risks.

The framework evaluates banks using four weighted indicators — size (40%), interconnectedness (30%), substitutability (15%), and complexity (15%) — reflecting total exposure, sector linkages, payment system roles, trading activities, and cross-border operations.