NRB directs BFIs to get ready for newly emerging risks in country’s financial system
Summary
Nepal Rastra Bank has issued new Risk Management Guidelines for banks and financial institutions, adding climate-related, cyber, and AI-driven risks to the existing framework. The central bank says BFIs must strengthen internal controls and tailor risk programs to their own operations.
Key Points
- Nepal Rastra Bank has revised its risk framework for banks and financial institutions to address newly emerging threats in the financial sector.
- The new guidelines include risks linked to climate change, artificial intelligence, machine learning, digitalization, cyber security, and payment system integrity.
- NRB says risk management must be treated as a top-level strategic function and tailored to each institution’s size and complexity.
- Conventional risks such as credit, liquidity, market, and interest rate risk remain part of the broader framework.
