Central bank restricts distribution of surplus fund after merger

Central bank restricts distribution of surplus fund after merger

The central bank today restricted distribution of the excess fund due to share swap after the merger of two financial institutions. "The surplus fund has to be added in the capital reserve and cannot be distributed among the financial institutions," the central bank said, adding that such amount in the capital reserve also cannot be distributed as cash dividends. As there are more mergers in pipeline, Nepal Rastra Bank (NRB) is tying to make mergers more transparent for the financial stability.
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