Kathmandu, Sept. 17 -- A bill to amend the Bank and Financial Institution Act 2017 tabled in Parliament on Wednesday contains a provision requiring banks to maintain a financial stabilisation fund that they can dip into during times of financial crisis.

The fund can be utilised if any bank and financial institution gets into a financial crisis that is likely to affect the entire financial sector.

According to Nepal Rastra Bank officials, the central bank inserted the provision to prevent banks from going into liquidation. "Apart from maintaining the other funds in the existing law, banks will have to set aside money to deal with potential crises if the bill is signed into law," said an anonymous source.

Currently, banks fall back on th...