KATHMANDU: The Nepal Rastra Bank (NRB) has decided to encourage the merger of commercial banks.

Although the merger and acquisition policy has significantly reduced the number of development banks and finance companies, the central bank is of the view that the number of commercial banks has not been as expected.

Some banks are now under pressure from mergers and acquisitions to increase their balance sheets.

Earlier, the central bank, in discussions with the chairpersons of banks, has indicated that it may provide some facilities for mergers and acquisitions.

NRB may announce some of the benefits of the merger, including Credit to Core Capital plus Deposit Ratio (CCD ratio), mandatory investment provisions, and the tenure of the operator.