KATHMANDU, MAY 04 - 2012
After Citi Bank’s announcement that would not carry out business transactions with Nepal’s government and private agencies, the Nepal Rastra Bank (NRB) has decided to shift its international banking transactions to Standard Chartered Bank.
NRB officials said the central bank has already started shifting businesses such as international payment and payment against letters of credit to Standard Chartered.
“After Citi informed us that it will not do business with NRB and other
commercial banks a few weeks ago, we decided to shift our accounts and
businesses to Standard Chartered,” said a senior NRB official. “As Standard Chartered has one of the largest global networks, we had decided to go with it although other banks such as JP Morgan Chase were under consideration.”
Citing increased regulatory compliance cost against business volume, Citi decided not to do business with Nepal.
According to central bank officials, Citi was covering some 80-90 percent of NRB’s corresponding banking business. Over the last two years, the central bank had been conducting most of its international business transactions through Citi.
NRB officials say Standard Chartered is the best option as doing business with other international banks could be costly. “We will go for other banks if problems arise with Standard Chartered,” said the NRB official.
With NRB also making investment in US banks, including Citi, NRB has removed its investment in Citi Bank. “Although Citi has not told us that it will not take investment from Nepali banks, we have moved our investment from Citi after they matured,” said another NRB official.
Along with NRB, other commercial banks have also started shifting their businesses from Citi to other banks.
Source: Kantipur
After Citi Bank’s announcement that would not carry out business transactions with Nepal’s government and private agencies, the Nepal Rastra Bank (NRB) has decided to shift its international banking transactions to Standard Chartered Bank.
NRB officials said the central bank has already started shifting businesses such as international payment and payment against letters of credit to Standard Chartered.
“After Citi informed us that it will not do business with NRB and other
commercial banks a few weeks ago, we decided to shift our accounts and
businesses to Standard Chartered,” said a senior NRB official. “As Standard Chartered has one of the largest global networks, we had decided to go with it although other banks such as JP Morgan Chase were under consideration.”
Citing increased regulatory compliance cost against business volume, Citi decided not to do business with Nepal.
According to central bank officials, Citi was covering some 80-90 percent of NRB’s corresponding banking business. Over the last two years, the central bank had been conducting most of its international business transactions through Citi.
NRB officials say Standard Chartered is the best option as doing business with other international banks could be costly. “We will go for other banks if problems arise with Standard Chartered,” said the NRB official.
With NRB also making investment in US banks, including Citi, NRB has removed its investment in Citi Bank. “Although Citi has not told us that it will not take investment from Nepali banks, we have moved our investment from Citi after they matured,” said another NRB official.
Along with NRB, other commercial banks have also started shifting their businesses from Citi to other banks.
Source: Kantipur
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