Nepal Rastra Bank is rolling out a two-phase capital support mechanism for commercial banks that fall short of capital adequacy requirements, as part of an ongoing reform program aligned with International Monetary Fund recommendations. Under the plan, the NRB intends to classify banks based on their capital positions by June 2026, with final assessment reports to be dispatched by mid-July 2026.
Banks identified as facing capital shortfalls will then be required to submit capital restoration plans by mid-August 2026. The phased approach is designed to gradually bring banks up to required capital adequacy ratios rather than imposing immediate compliance.
The measure addresses longstanding concerns about the capital health of parts of Nepal's commercial banking sector and forms part of broader structural financial sector reforms the government has committed to under its IMF engagement.