Thursday Sep 29, 2022
Thursday Sep 29, 2022

NRB, Central Bank of Nepal and IFC sign MoU


Nepalnews
2022 Feb 02, 8:43, Kathmandu

Nepal Rastra Bank (NRB), the central bank of Nepal, and International Finance Corporation (IFC) have signed a memorandum of understanding for the psychometric scoring solution – a tool to assess potential borrowers on the basis of individual financial capital, collateral, capacity, conditions (terms of the loan) and character (personal credibility).

It is expected that the psychometric scoring system that technology would help make the system further tech-savvy and promote simple and risk-free credit flow.

In the presence of NRB Governor Maha Prasad Adhikari, Executive Director of Department of Microfinance Institutions Supervision of the central bank, Suman Prasad Adhikari and IFC’s Resident Representative for Nepal Babacar Sedikh Faye signed the MoU on Tuesday. The MoU was signed to pilot the innovative method to promote digital financial service measuring the credit character of the potential borrowers.

The tool is to be tested in the financial system of Nepal for two years in collaboration with the Government of Japan and the United Kingdom. This will also help include the people receiving small loans and every enterprise to the ambit of formal financial services.

The tool is also expected to help banks and financial institutions to develop credit risk profiles based on data analysis of the credit character and psychological being of the potential borrower and encourage service recipients to the mainstream in formal financial services.

On the occasion, Governor Adhikari said the new MoU would make the microcredit management technology-friendly and also thanked the IFC Resident Representative for providing NRB an opportunity for the new collaboration.

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Nepal Rastra Bank central bank of Nepal International Finance Corporation psychometric scoring system Maha Prasad Adhikari
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