Part A: Reengineering of the Nepal Rastra Bank (NRB)

1. Strengthening NRB’s human resource management capabilities.
2. Strengthening NRB’s supervisory and regulatory capacity with respect to banks and non-banking financial institutions.
3. Supporting NRB’s comprehensive legislative and regulatory reform efforts in the financial sector.
4. Strengthening NRB’s accounting and auditing capabilities to produce better quality and more timely financial and accounting information.
5. Supporting Internal audit functions.
6. Conducting a training program for professional development of the staff of NRB and that of member banks of the Nepal Bankers’ Associaiton including in-house training and attendance at external seminars and conferences.

Part B: Restructuring Rastriya Banijya Bank Limited and Nepal Bank Limited

1. Controlling bank day-to-day operations.
2. Stabilizing their operational and functional positions.
3. Strengthening the accounts of these institutions and improving their accounting system.
4. Designing a human resources program that will include, among other things, a training program, a retrenchment program and a revised remuneration package for bank staff, and
5. Preparing these institutions for divestiture from the public sector by way of hiring a bank restructuring advisor.

Part C: Other Financial Sector Assistance

1. Strengthening the Banker’s Training Center.
2. Strengthening the Credit Information Bureau and the means through which credit information is disseminated.
3. Supporting training and capacity building among local journalists to assist them in conveying financial and business news and issues to the public.
4. Supporting the coordination Support Team in implementing and supervising the Project, especially in relation to financial management, procurement and coordination capabilities.
5. Supporting the establishment of a secured transaction registry for registering movable collateral.
6. Strengthening the capacity of the Debt Recovery Tribunal to improve loan recovery of banks and financial institutions.

1. Restructuring and re-engineering the Nepal Rastra Bank for it to effectively perform key central banking functions.
2. Implementing reforms in the commercial banking sector that will focus initially on restructuring Rastriya Banijya Bank and Nepal Bank Ltd.
3. Improving the environment for financial sector reforms in areas such as credit information and financial news reporting through specialized training and capacity building.

Diligence and efficiency and in conformity with appropriate administrative, Banking, Economic and Financial practices and shall provide or cause to be provided, promptly as needed the funds, facilities, services and other resources required for the project. Under the supervision of qualified and experienced management assigned by competent staff in adaquate numbers and in accordance with the NRB Act. 

The financial performance of two public sector banks, NBL and RBBL has been improved. Such as, Non-performing asset has been reduce, both banks have been earning net profit; they are conducting their audit on time and publishing financial results on time. Both banks have substantially reduced number of employees through Voluntary Retired Scheme (VRS). The both banks are almost automated their financial transaction.