Increased profits ensure more space for banks to expand their businesses
Summary
Banks and financial institutions in Nepal have increased their profits through write-back of provisions for doubtful debts, improving their capital adequacy and enabling business expansion.
Key Points
- Banks and financial institutions have increased their profits by writing back provisions for doubtful debts.
- Capital adequacy ratio for commercial banks increased by 0.55 percentage points to 13.05 percent in one year.
- Regulatory requirement mandates commercial banks to maintain 11 percent capital adequacy, with 8.5 percent in Tier I and 2.5 percent in Tier II.
- Improved capital adequacy allows banks to expand lending and investment activities.
