Bank and financial institution act 2073 were issued to amend and consolidate forthwith the prevailing laws in order to increase the general public confidence towards the banks and financial institutions. Following are the features of this act;
Since it has combined the individual law related to BFIs, it is an umbrella banking law;
It is a regulating banking law as all banking transactions are regulated by this law;
It focusses on good governance of the bank and financial institution;
It maintains financial stability by promotes healthy competition among the bank and financial institutions;
It allows banks and financial institution to buy back their own shares;
It has mentioned the provision regarding the incorporation of banks and financial institution as a public company;
It uses economic liberalization to modernize banks and financial institutions;
It has mentioned the functions that shouldn’t carried out by the banks and financial institutions;
Rationale arguments in favor of “Why infrastructure development bank”
Infrastructure development bank was established to accelerate the infrastructure development and work as a bridge the financial gap in infrastructure and its allied sectors in Nepal;
To work across the infrastructure landscape to act as a catalyst for the building longterm and sustainable infrastructure that led economic growth in Nepal;
BAFIA 2073 has authorized to disburse loan on those sectors or project related to infrastructure development in Nepal;
Since it promote infrastructure development in the form of road, dam and physical structure and other project for the integration of Nepalese economy, it was essential to established;
Proper infrastructure ensures adequate investment in the country for the several projects that positively impact on the Nepalese economy;
By investing and developing adequate infrastructure all over the country, it literally helps to increase the standard of living of general pubic of the Nepal;
It directly or indirectly support the financial inclusion to increase the financial literacy of the country;
Unlike other financial institutions, infrastructure development focused on the development of infrastructure project to uplift the economy of Nepal. For this course of action, this bank disburse loan on to the development projects. That is why it is essential to established.
