KARACHI: The State Bank of Pakistan (SBP) signed a memorandum of understanding (MoU) with its Nepalese counterpart, Nepal Rastra Bank, to cooperate in the field of supervision and exchange of supervisory information.

The agreement was signed in a ceremony here on Thursday.

Habib Bank has an affiliate in Nepal, Himalayan Bank, with a 20 per cent shareholding. The MoU will enhance bilateral relationship and sharing of information to accomplish convergence towards common modalities and standards in cross-border supervision of banks operating in both countries.

Nepal is the third country in the Saarc region with which Pakistan has established a central banking MoU. The other two countries are Bangladesh and Sri Lanka.