Section 88G: Recommendation May be Made for Improving the Financial Condition of the Commercial Bank or Financial Institution

1) If it is seen that negative effect shall be incurred in overall financial stability or system while accomplishing the process of resolution commenced regarding any commercial bank or financial institution as per this Chapter, Special Administration Team shall have to submit the report, along with the steps to be moved in future, by mentioning such description, including the condition of the properties and liability of such institution so as not to let such condition be created.

2) After receiving the report as per sub-section (1), if negative effect is seen to occur in entire financial stability and system while carrying out resolution of such commercial bank or financial institution by the Bank, and if it is seen that financial condition can be improved when the Government of Nepal invests in such commercial bank or financial institution, the Bank shall recommend such description, along with its opinion, before the Government of Nepal.

3) If financial condition of any commercial bank or financial institution is improved after investing by the Government of Nepal in such commercial bank or financial institution upon the recommendation of the Bank as per sub-section (2), the Government of Nepal shall have to recover its invested amount within maximum of five years from the date of improvement by selling to the private sector through bid.