Deputy Governor of the central bank Gopal Prasad Kaphle says China’s central bank is positive about opening a branch of a Chinese bank in Nepal.

"We have raised the issue at the governor, and deputy governor levels. We have urged the Chinese central bank to open a branch in Nepal so that it becomes easier to carry out transactions through the banking channel,” said Kaphle.

“The presence of Indian JVs in Nepal has helped us a lot, but we don’t have Chinese banks in Nepal. I think the main reason for this is that the level of communication we have with India is mare higher compared to that of China,” said Kaphle in an interview with New Business Age.

“One reason the people mostly point out for Chinese banks not coming to Nepal is that Nepal’s economy is very small compared to China’s, and it would not make sense for them to have a presence in Nepal. The same can be said about India, but Indian JVs have a good presence in Nepal,” he added.

Read Kaphle’s interview in the September issue of New Business Age.