Microfinance Companies with More than 10 Percent Cross-holding of BFIs to Merge: NRB
January 4, 2022 | Investopaper
Micro Financial Institutions (MFIs) are required to submit a merger plan to Nepal Rastra Bank by Ashad End, 2079 BS [Mid-July, 2022]. Nepal Rastra Bank, on Monday, issued a directive to the ‘D’ class institutions to submit a plan for the merger.
In order to reduce the number of microfinance companies, the central bank has asked the companies to merge or acquire each other in which the bank/financial institution have cross-holding of more than 10 percent.
Similarly, microfinance companies with more than 51 percent share of the same bank and financial institution have to go for mergers or acquisitions.
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