Nepal Rastra Bank has completed a draft of the Asset Management Company (AMC) Act, intended to address the growing volume of non-performing assets in the banking sector. The draft is ready for approval by the NRB board before being forwarded to the Ministry of Finance and Parliament. However, political uncertainty following the dissolution of Parliament after Gen Z protests and the announcement of elections on March 5, 2026, has raised concerns over delays. The AMC, long proposed to manage bad loans now averaging over 5 percent, may not be implemented before the next fiscal year. The company is expected to help banks offload unsold assets and improve liquidity once established.
