Introduction

Introduction

Confederation of Banks and Financial Institutions Nepal (CBFIN) is an umbrella organization of commercial banks, development banks, and finance companies of Nepal established on October 18, 2019 (Ashwin 1, 2076) to promote and protect the interests of investors /stakeholders and explore business and investment potentials across the country to strengthen the financial sector.

Objectives

CBFIN has been established with the major objectives of maintaining sound business relations between all sorts of financial institutions, take initiatives to promote healthy competition in the market and enhance investors’ confidence in the overall banking system. Moreover, CBFIN focuses its activities through policy dialogues and provide valuable inputs to the regulatory bodies based on research to protect the rights of depositors and investors. This initiative supports to create an enabling environment for delivering banking services to the people in a smooth manner and makes the economy more resilient.

The major objectives of CBFIN are to bring positive and meaningful changes in the socio-economic lives of people by improving the services delivered by the banks and financial institutions across the country. CBFIN aims at ‘promoting and protecting’ depositors/investors and create a more investment friendly environment in the country for prosperous Nepal. As an umbrella organization of commercial banks, development banks and finance companies, it contributes effectively in developing sound financial system for shared prosperity.

a) To protect the rights of shareholders/investors and stakeholders by maintaining stability in the financial sector.

b) To maintain sound relations and strengthen coordination with the related state-owned bodies such as the Ministry of Finance, Nepal Rastra Bank, other related government ministries, Provincial Governments, local governments and other relevant bodies. It also focuses on supporting the government in formulating appropriate policies, rules, laws regarding the banks and financial sector and in investment front in creating appropriate business environment.

c) To coordinate and assist the CBFIN members in resolving various problems emerged in the financial sector including legal, procedural and technical issues and share information for empowering the members, organize seminars/interaction on specific policy issues, take initiatives to solve the problems for strengthening the financial sector.

d) To take initiatives in introducing latest technology in the banking and financial sector to make the sector more competent, efficient and secured.

e) To take initiative and make considerable efforts in making the banking transactions effective and dynamic by adopting the necessary policies, rules, procedures to provide fast and convenient modern banking services.

f) To establish information and communication links between the relevant bodies for the overall development and promotion of the financial sector in collaboration with national and international banks and financial institutions.

g) To maintain regular communications with the Nepal Rastra Bank and the related bodies to take stock of the challenges and issues faced by the banks and financial institutions and find appropriate solutions.

h) To support in the growth of banking and financial institutions by identifying potential areas for investment and expansion of banking business.

i) To provide valuable suggestions to the Nepal Rastra Bank, Ministry of Finance and other related bodies for reform.

j) To act as a liaison body between the banks and financial institutions and the Nepal Rastra Bank and other government ministries.

k) To coordinate with the members of CBFIN, discuss with them about potential risk in the banking and financial sector and compile related issues and support them with an appropriate solution.

l) To take necessary initiatives to enhance positive environment among the general public towards the banking and financial sector as a whole.

Working Strategy

The Confederation focuses its activities in a bid to improve financial system and identify problems/challenges beset in the financial sector and investment front as a whole and design solutions to resolve them. CBFIN, since its establishment, has been working with the Government of Nepal, Ministry of Finance, Nepal Rastra Bank and other related bodies and stakeholders with the objective of developing, expanding and upgrading the national economy through investment generation.

CBFIN has been facilitating and coordinating for the effective implementation of the rules, regulations and policies issued by the regulatory bodies. It has been professionally presenting its concrete suggestions on policy issues to the related bodies based on research to invigorate the development process, support to create new entrepreneurs and boost national economy.

The major objectives of CBFIN are to bring positive and meaningful changes in the socio-economic lives of people by improving the services delivered by the banks and financial institutions across the country. CBFIN aims at ‘promoting and protecting’ depositors/investors and create a more investment friendly environment in the country for prosperous Nepal. As an umbrella organization of commercial banks, development banks and finance companies, it contributes effectively in developing sound financial system for shared prosperity.

a. To achieve the objectives of CBFIN, it engages itself in resource mobilization through R&D activities, coordinates with national and international organizations and other relevant organizations.

b. To conduct research/study on relevant sectors/issues identified by the CBFIN and other challenging issues emerged in the financial sector. It also organizes workshops, seminars, and trainings as required.

c. To take initiatives for resource mobilization and move jointly with the Government of Nepal, Nepal Rastra Bank, State Governments, or other domestic or foreign agencies.

d. To exchange information and collaborate with various national and international associations, institutions, companies and bodies as per the requirements.

e. To improve public relations between the CBFIN, investors, and people for enhancing the image of the banking industry as a whole. Maintain regular correspondence with national and international organizations, establishing mutual relation, maintain economic, social, and technical assistance.

Membership Provision

The major objectives of CBFIN are to bring positive and meaningful changes in the socio-economic lives of people by improving the services delivered by the banks and financial institutions across the country. CBFIN aims at ‘promoting and protecting’ depositors/investors and create a more investment friendly environment in the country for prosperous Nepal. As an umbrella organization of commercial banks, development banks and finance companies, it contributes effectively in developing sound financial system for shared prosperity.

Founding Members

The  people who signed the CBFIN Constitution at the time of registration of this organization are recognized as the founding members .

General Members

The banks and financial institutions categorized as A, B, and C including Nepal Infrastructure Bank (NIFRA), can become eligible members of the CBFIN under the prescribed procedure of CBFIN constitution. If the organization approves such application as per the criteria of the organization, the organization will become a general member. General members will have to pay the fee as decided by the executive committee in accordance with the constitution of the organization.

Honorary Members

The Executive Committee, if found appropriate, as per the rules, will grant honorary membership to the national and international organizations.

Eligibility for membership:

A, B, and C categories of banks and financial institutions including Nepal Infrastructure Bank licensed under Nepal Rastra Bank and operated under the prevailing law. Such kinds of banks and financial institutions will be eligible to be a member of this organization. Banks and financial institutions eligible for general membership who pay the prescribed fee along with the application, the executive committee will grant membership to them.

Moreover, member organizations have to renew their membership by paying the prescribed fee in each financial year. They must follow the code of conduct released by the organization.

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