Treasury Introduction

The Bank operates a full-fledged Treasury Department within the parameters of the foreign exchange rules and regulations issued by Nepal Rastra Bank (NRB) – Central Bank of Nepal. Treasury has moved beyond its traditional role of managing and monitoring the bank’s fund position and overall asset-liability position to a role where it is involved directly in profit-centered activities.

The Bank offers a full range of treasury services, which includes buy/sell of foreign currencies in both spot and forward market, money market dealings, buy/sell of government treasury bills/bonds and treasury advisory services. It looks into Bank’s liquidity & market risk management, ALM, Bank’s balance sheet management, transfer pricing, investment, and correspondent banking. The core treasury operations comprise the balance sheet management function, the client-related corporate markets business, and the proprietary trading activity. The principal responsibilities of the Treasury included management of liquidity and exposure to market risks.

Treasury’s primary earnings are in the form of exchange income which comes from proactive management of foreign exchange which comes from trade finance activities and partnership with remittance agencies. Bank’s Treasury is also a major participant in the FX Forward market. The Bank deals in FX Forward for balance sheet management and market making purposes whereby the Bank offers forward products to its customers, enabling them to hedge their risks.

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