The us -based citi bank's decision to discontinue all banking relations with Nepal has opened door for other international banks to expand their business in Nepal in corresponding banking.
as soon as Citi notified of its plan to exit, nepal banks have started shifting their business to other banks involved in corresponding banking. Nepal investment bankd limited (NIBL) which has 26-year long relations with the Citi, has started making payment of the letter of credit (lc) through other international banks such as mashreq of UAE standard chartered and JP morgan chase.
"since citi official visited us and also wrote about discontinuing all service giving certain deadline , we have started shifting our businesses to other banks." said raajan amatya deputy general manager of NIBL. citi sought to cut off link with nepal.stating that its business in nepal remaind insignificant even as its cost grew while documenting information about nepal banking to company with the us rules and regulations.
it has informed the nepal banks that it will completely stop doing business with nepal after end of april . as citi cover a big share of nepal corresponding bankind business , other banks involved in the same business will banefit fron the citi's decision .
nepal rastra bank wich has asked the citi to continue its corresponding banking with nepal after city informed it about its exit plan is also considering shifting its business to other banks.
we have to opt for standard chartered mashreq or other banks to further business if citi is determained to close ots business relation with nepal. However the central bank official say that they are hope ful that the international bank reconsiders its decision. bankers however believe it will not have big impact on their business . " if citi gose, other steps in ." said anil gnawali , chief executive officer of nepal bank . city it just discountinuing its relations with reason dueto business reasons according to their letters.
citi.s exit has given an opportunity to other international banks to expand their correspoinding banking business with nepal accourding to a source at the mashreq bank LC business to come to then after the latest development.
as soon as Citi notified of its plan to exit, nepal banks have started shifting their business to other banks involved in corresponding banking. Nepal investment bankd limited (NIBL) which has 26-year long relations with the Citi, has started making payment of the letter of credit (lc) through other international banks such as mashreq of UAE standard chartered and JP morgan chase.
"since citi official visited us and also wrote about discontinuing all service giving certain deadline , we have started shifting our businesses to other banks." said raajan amatya deputy general manager of NIBL. citi sought to cut off link with nepal.stating that its business in nepal remaind insignificant even as its cost grew while documenting information about nepal banking to company with the us rules and regulations.
it has informed the nepal banks that it will completely stop doing business with nepal after end of april . as citi cover a big share of nepal corresponding bankind business , other banks involved in the same business will banefit fron the citi's decision .
nepal rastra bank wich has asked the citi to continue its corresponding banking with nepal after city informed it about its exit plan is also considering shifting its business to other banks.
we have to opt for standard chartered mashreq or other banks to further business if citi is determained to close ots business relation with nepal. However the central bank official say that they are hope ful that the international bank reconsiders its decision. bankers however believe it will not have big impact on their business . " if citi gose, other steps in ." said anil gnawali , chief executive officer of nepal bank . city it just discountinuing its relations with reason dueto business reasons according to their letters.
