The policy does not ban high LVR lending, but allows banks to write no more than 10 percent of their mortgage commitments at LVRs over 80 percent, and has led to a significant reduction in high-LVR lending.
SAARCFINANCE Seminar on  "Macro-prudential Policies in SAARC Countries" 8-9 June 2017, Kathmandu, Nepal  Inaugural Address by Dr. Chiranjibi Nepal, Governor of Nepal Rastra Bank Deputy Governor of Nepal Rastra Bank Mr. Chinta Mani Siwakoti, Board Members of Nepal Rastra Bank Dr. Sri Ram Poudyal and Mr. Ramjee Regmi Special Guest and Economic Adviser at Bangladesh Bank Dr.Mohammad Akhtaruzzaman, Eminent Resource Person and Principal Economist at the BIS Dr. Ilhyock Shim, Executive Directors of Nepal Rastra Bank Seminar Participants, Media Friends, Distinguished Guests, Ladies and Gentlemen, It gives me great pleasure to address this august gathering at this SAARCFINANCE Seminar on "Macro-Prudential Policies in SAARC Countries.” This theme seems to be very appropriate as significant macro-prudential policy reforms worldwide are being designed to respond to the increasingly interconnected nature of financial institutions, markets and systems.