'Bank Supervision in Nepal Essay\r'

'Banks are the pillars of parsimoniousness in real not bad(p)istic market of a nation. They are prime sources of investment that play springy role in mobilizing resources to an optimum level in business world. The role of banking welkin in economical growth and stability requires continuous and reliable service. In Nepal, Nepal Ratra Bank (NRB) is only an authorized body accountable for the monetary regulation and supervision of all banks and financial institutions authorize by it. It regulates price and balance of payments stability, carry away liquidity, develop a sound payment system, and crowd financial services and financial stability of the nation. The call of information technology (IT) by financial sector creates numerous challenges of managing and governing it in today’s context.\r\nIssues of tackling with changes in technology, migrating system from one to an separate, maintain fitted knowledgeable control system and managing other IT think adventures are emerging in banking sector. Frauds through debit and trust cards, ATM, internet banking, mobile banking have increase the risk of financial loss along with other banking risks. Technology risk is not only bear on with operation risk of the bank, other banking risks like credit risk, reputation risk, compliance risk, market risk, strategic risk are also increased due to it. In this scenario, there must be a rule of thumb to regulate sound and robust risk focus technology that strengthens system pledge, reliability, availability and business continuity.\r\nBanks licensed by NRB should maintain the prescribed level of capital fund while opening branches only at prescribed locations. Every NRB reports submitted by bank should be transparent and must be properly reviewed and affirm by NRB. Credit information bureau of both client must be recorded and submitted to the refer authorities for any credit or add functionalities. To defend illegal users from accessing banking syste m, it is essential to well set up customers to conduct banking operation securely. Similarly, it is also important to prepare other stakeholders including its employees to create effective information security practice.\r\nSummarizing up, NRB being an apex body, it should seriously pursue sundry(a) policies, strategies and actions to maintain the stability in price and unify the balance of payments for sustainable development of the economy of Nepal. The change magnitude complexity of IT in banks creates significant risk to which large risk management comprising of various standard internal control framework, bank’s own necessary and NRB requirement must be implemented. To ensure effectivity of implemented control framework and adequacy of the choose security plan and procedures, banks should conduct Information form (IS) audit annually. They should clearly provide information almost the services, cost, security features, risk and benefits of electronic banking env ironment.\r\n'