{"id":1002,"date":"2024-08-30T03:06:30","date_gmt":"2024-08-30T03:06:30","guid":{"rendered":"https:\/\/english.bankingkhabar.com\/?p=1002"},"modified":"2024-08-30T03:21:26","modified_gmt":"2024-08-30T03:21:26","slug":"banks-no-longer-required-to-maintain-additional-capital-buffer","status":"publish","type":"post","link":"https:\/\/english.bankingkhabar.com\/?p=1002","title":{"rendered":"Banks No Longer Required to Maintain Additional Capital Buffer"},"content":{"rendered":"<p><a href=\"https:\/\/english.bankingkhabar.com\/?attachment_id=1003\" rel=\"attachment wp-att-1003\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1003\" src=\"https:\/\/english.bankingkhabar.com\/wp-content\/uploads\/2024\/08\/buffer.jpg\" alt=\"\" width=\"1200\" height=\"691\" srcset=\"https:\/\/english.bankingkhabar.com\/wp-content\/uploads\/2024\/08\/buffer.jpg 1200w, https:\/\/english.bankingkhabar.com\/wp-content\/uploads\/2024\/08\/buffer-300x173.jpg 300w, https:\/\/english.bankingkhabar.com\/wp-content\/uploads\/2024\/08\/buffer-1024x590.jpg 1024w, https:\/\/english.bankingkhabar.com\/wp-content\/uploads\/2024\/08\/buffer-768x442.jpg 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<p><b>Banking Khabar\/<\/b><span style=\"font-weight: 400;\"> Banks will no longer be required to maintain an additional capital buffer, known as the countercyclical buffer. Nepal Rastra Bank (NRB) issued a circular announcing this change, relieving banks from the obligation to set aside this extra capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the NRB&#8217;s circular, effective from Shrawan 2081 (July 2024), the countercyclical buffer will be set at zero percent for the fiscal year 2081\/82. Previously, the central bank had mandated this additional capital requirement at the end of the fiscal year 2079\/80.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The requirement to maintain such a buffer is based on the relationship between the Gross Domestic Product (GDP) and credit growth. According to the Capital Framework 2015, NRB had imposed a 0.5% buffer capital requirement for the previous fiscal year. This framework stipulates that when the ratio or distance between GDP and credit growth ranges from 5 to 15 or higher, banks are required to hold an additional capital buffer of 0.5% to 2.5%. In the last fiscal year, banks were required to maintain an additional 0.5% capital buffer.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Banking Khabar\/ Banks will no longer be required to maintain an additional capital buffer, known as the countercyclical buffer. Nepal Rastra Bank (NRB) issued a circular announcing this change, relieving banks from the obligation to set aside this extra capital. According to the NRB&#8217;s circular, effective from Shrawan 2081 (July 2024), the countercyclical buffer will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,14,12,3],"tags":[71,74,73,72,75],"class_list":["post-1002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-khabar","category-banking-khabar-banking-khabar","category-banner","category-main-news","tag-banking-buffer","tag-banking-terms","tag-counter-cyclical-buffer","tag-countercyclical-buffer","tag-no-capital-buffer"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Banks No Longer Required to Maintain Additional Capital Buffer - Bankingkhabar<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/english.bankingkhabar.com\/?p=1002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks No Longer Required to Maintain Additional Capital Buffer - Bankingkhabar\" \/>\n<meta property=\"og:description\" content=\"Banking Khabar\/ Banks will no longer be required to maintain an additional capital buffer, known as the countercyclical buffer. Nepal Rastra Bank (NRB) issued a circular announcing this change, relieving banks from the obligation to set aside this extra capital. 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