Supervisory Role of Nepal Rastra Bank

Supervisory Role of Nepal Rastra Bank as a central Bank is very important role. It helps to bring the commercial banks and financial institutions back into the track in case they deviate from their do's. For supervision of the Banks and financial institutions very competent staffs are needed. In the lack of experienced, trained, dedicated, professional and above all positive thinkers and having knowledge of related acts, rules and regulations supervisory work carried out, I think,would be less effective as well as may damage the image of central bank. Before recruiting the staffs for supervisory purpose it is very important to analyze and scrutinize the past behavior and their competency.
Supervision must not be done for the shake of supervision and to show the supremacy of the supervising agency whether it is a board or the central bank. Provision made in acts, rules and regulations must be taken care into consideration. Monopolistic approach, beyond acts, rules and regulations, should not be given place during supervision. The shadow of Personal relation and feeling of supremacy also should never come during the same. It is the team leader and the chief of department to look whether the report of the juniors are based on present acts, rules and regulations. This helps to convince the bank and financial institution that supervisory body is the true friend not just a supervisory body. Sometimes it is seen that the juniors with no reason raise the issue which the bank and financial institutions carry as per the prevailing law. They don't go as per the prevailing law but try to explain the very clear provision made in the respective law as if they are the full authority to carry out the same. Such behavior has very negative impact on the banks and financial institutions. Such issue which is not a issue is the waste of time.
So what I suggest that let supervisory body, in case of Nepal Nepal Rastra Bank (must think that com.banks and financial institutions are the integral part of the economy) and the banks and financial institutions must go together hand in hand to build the new democratic republic nation a very developed one. But it is my perception that supervisory role of supervisory body is very important through which stake holders are assured of their stake which is very important for their business relation with the bank and financial institution and for the benefit of the bank and financial institution itself.
I request all the viewers for their comments and suggestions.