strategy of the nepal rastra bank has now been to consolidate the institutional expansion along with ensuring wider and better access to financial services. hence, while merger of urban - centered institutions is encouraged, expansion of micro finance institutions in the rural areas establishment of bank branches in the underserved areas is given a priority. on the whole, financial policy comprises of a two - pronged strategy – consolidating the urban financial institutions and expanding the institutional presence in the rural areas. bank licensing, bank branch expansion, refinance, and credit policies are geared towards this direction. the nrb is of the view that the expansion of the financial sector will be constrained without the growth of the real sector. thus, priority has been accorded to the productive use of bank credit to the promotion of the real sector through judicious use of credit and macro - prudential policies. as a competitive, efficient and healthy financial system is vital for enhancing economic growth, ensuring economic efficiency and maintaining macroeconomic stability, a reasonable growth of the real economy is equally important to sustain the expansion of the financial services. as financial stability has been a primary concern of nepal rastra bank, it has been addressing pertinent issues such as productive use of credit, enhancing access to financial services, deposit guarantee, exercise of macro - prudential measures, strengthened bank supervision and enforcement of good governance measures. it has introduced some measures such as early warning, prompt corrective actions, know - your customer, stress testing and risk based supervision to ensure resilience of the financial system. we are also embarking on a strong legal framework for anti - money laundering and financial crisis management. fellow governors and distinguished delegates, while going through the overall acu transaction, trade routed through acu in last three years has declined significantly by about 30 percent, 37 percent and 8 percent in 2011, 2012 and 2013 respectively. similarly, following the trend of preceding years, total transactions have declined by about 12 percent during the first three months of the current year on y - o - y basis compared to the figure of last year. further, the trade is concentrated, primarily, within a few member countries. all these facts warrant member countries to evaluate the trend ; and i urge all the fellow governors to rethink on how we can better serve the enshrined objectives bis central bankers ’ speeches of establishment of the acu mainly promoting regional trade and monetary co - operation amongst the members. as regards to our activities under acu

rich culture, nature and the friendly people during your stay and during the social events that would take place following the meetings. 8. let me close my remarks by once again welcoming rt. honorable president, honorable finance minister, fellow governors and distinguished delegates to this 49th governors ’ conference / high level seminar and the meeting of board of governors in nepal. i look forward to a rewarding discourse and exchange of views and experiences among fellow governors which will help better deliver our central banking roles and responsibilities. thank you bis central bankers ’ speeches