Exchange of Supervisory Information: SBP signs MoU with Nepal's Rastra Bank

In order to enhance the mechanism to exchange supervisory information, the State Bank of Pakistan (SBP) on Thursday signed a Memorandum of Understanding (MoU) with the central bank of Nepal. According to SBP announcement MoU has been signed between State Bank of Pakistan and the Nepal Rastra Bank - the central bank of Nepal to cooperate in the field of Supervision and Exchange of Supervisory Information.
The cooperation between the countries is in accordance with Basel Core Principles for Effective Banking Supervision. The agreement was signed in a ceremony held on Thursday at the SBP Head Office in Karachi. Syed Irfan Ali, Executive Director Banking Policy & Regulations Group SBP and Maheshwor Lal Shrestha, Executive Director Banking Supervision Department NRB, signed the agreement on behalf of their respective countries.
It may be noted that Habib Bank Limited has an affiliate in Nepal, namely Himalayan Bank Ltd with 20 percent shareholding. This MoU will enhance bilateral relationship and help sharing information to accomplish convergence towards common modalities and standards, in cross border supervision of banks, operating in both the countries, SBP said.
It may be recalled that Nepal is the third country in the SAARC region with which Pakistan has established a central banking MoU as SBP has already signed MoU with two other SAARC countries ie Bangladesh and Sri Lanka for bilateral cooperation.