NRB Assistant Director flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Nepal Rastra Bank establishment
- NRB was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955 and began central banking operations in 1956, taking over note issuance from the government.
- Banks and Financial Institutions Act
- The BFIA 2073 (2017) governs licensing, capital, governance and regulation of Class A commercial banks, Class B development banks, Class C finance companies and Class D microfinance institutions in Nepal.
- Policy repo rate
- The rate at which the central bank lends short-term funds to banks against government securities. It is the main operating target of monetary policy and the midpoint of the interest rate corridor.
- Cash reserve ratio
- The minimum share of a bank's deposits that must be held as non-interest-bearing balances with the central bank. Raising it drains liquidity; lowering it releases lendable funds.
- Statutory liquidity ratio
- The minimum share of deposits a bank must hold in specified liquid assets, mainly government securities. It protects depositors and creates a captive demand for public debt.
- Interest rate corridor
- A band set by the central bank for short-term market rates. The standing lending facility rate forms the ceiling and the deposit collection rate forms the floor around the policy rate.
- Nepalese rupee peg
- Nepal maintains a fixed exchange rate against the Indian rupee at roughly 1.6 Nepalese rupees per Indian rupee. The peg imports Indian inflation and limits independent monetary policy.
- GDP expenditure identity
- Total output equals consumption plus investment plus government spending plus net exports: Y = C + I + G + (X - M). It decomposes the sources of aggregate demand in an economy.
- GDP deflator
- A price index covering all domestically produced goods and services, calculated as nominal GDP divided by real GDP times one hundred. It measures broad inflation in the economy.
- Consumer price index
- A measure of the cost of a fixed basket of goods and services relative to a base period, expressed as an index. Its percentage change is the reported inflation rate.
- Money multiplier
- The ratio of broad money to reserve money. In the simple model it equals one divided by the reserve ratio; it shows how bank lending expands the money supply.
- Balance of payments
- A statistical record of a country's transactions with the rest of the world, comprising the current account, capital and financial account, and errors and omissions. It must balance overall.
- Purchasing power parity
- The proposition that exchange rates adjust so identical baskets of goods cost the same across countries. It underpins long-run exchange rate comparisons and inflation differentials.
- Basel III CET1 minimum
- Common Equity Tier 1 capital must be at least 4.5 percent of risk-weighted assets, with Tier 1 at 6 percent and total capital at 8 percent, plus buffers.
- Capital conservation buffer
- An additional 2.5 percent of risk-weighted assets held above the minimum capital ratios in normal times, which can be drawn down under stress to absorb losses.
- Risk-weighted assets
- Total exposures weighted by regulatory risk factors for credit, market and operational risk. They form the denominator of capital adequacy ratios.
- Know your customer
- The requirement for banks to identify customers, verify identity, understand the source of funds and monitor transactions to prevent money laundering and terrorist financing.
- Deposit insurance
- A scheme that reimburses depositors up to a prescribed limit if a bank fails. In Nepal it is administered by the Deposit and Credit Guarantee Fund.
- Non-performing loan
- A loan on which principal or interest is overdue beyond the prescribed period. NRB classifies such loans as substandard, doubtful or bad and requires higher provisioning.
- CAMELS rating
- A supervisory rating covering Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. The composite rating guides the intensity of supervision.
- Liquidity coverage ratio
- High-quality liquid assets divided by net cash outflows over a thirty-day stress period. A ratio of at least 100 percent shows a bank can survive a short liquidity shock.
- Net stable funding ratio
- Available stable funding divided by required stable funding over a one-year horizon. A ratio of at least 100 percent limits reliance on short-term wholesale funding.
- Macroprudential policy
- Tools that address risks to the financial system as a whole, such as countercyclical capital buffers, loan-to-value caps and sectoral exposure limits, rather than risks at individual institutions.
- Stress testing
- A forward-looking exercise that applies severe but plausible shocks, such as rising defaults or deposit withdrawals, to measure capital and liquidity resilience of banks or the system.
- Accounting equation
- Assets equal liabilities plus equity. Every transaction preserves this identity, which is why double-entry bookkeeping records equal debits and credits.
- Straight-line depreciation
- An annual charge equal to the asset's cost minus residual value, divided by its useful life. It spreads the depreciable amount evenly over the asset's service period.
- Net present value
- The sum of a project's future cash flows discounted at the required rate, minus the initial investment. A positive NPV indicates the project adds value.
- Current ratio
- Current assets divided by current liabilities. It measures a firm's ability to meet short-term obligations; a ratio below one signals possible liquidity strain.
- Coefficient of variation
- The standard deviation divided by the mean, often expressed as a percentage. It compares relative dispersion across datasets with different units or scales.
- नेपाली वर्णमाला
- नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन गरी ४४ वर्ण हुन्छन्। स्वर ह्रस्व, दीर्घ र प्लुत भेदमा विभाजित हुन्छन् र व्यञ्जनको वर्गीकरण उच्चारणस्थानअनुसार गरिन्छ।
- कारक र विभक्ति
- कारकका आठ भेद हुन्छन्: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन। विभक्ति चिह्नले वाक्यमा संज्ञा वा सर्वनामको भूमिका देखाउँछ।
- Right to Information Act
- Nepal's RTI Act 2064 (2007) obliges public bodies to disclose information proactively and to answer requests within fifteen days, with limited exemptions for confidentiality.