KARACHI : A Memorandum of Understanding (MoU) has been signed between State Bank of Pakistan (SBP) and the Nepal Rastra Bank – the central bank of Nepal – to cooperate in the field of supervision and exchange of supervisory information. The cooperation between the countries is in accordance with Basel Core Principles for effective banking supervision. The agreement was signed in a ceremony held on Thursday at the SBP Head Office. SBP Banking Policy & Regulations Group Executive Director Syed Irfan Ali and NRB Banking Supervision Department Executive Director Maheshwor Lal Shrestha signed the agreement on behalf of their respective countries. It may be noted that Habib Bank Limited has an affiliate in Nepal, namely Himalayan Bank Ltd with 20 percent shareholding. The MoU will enhance bilateral relationship and help sharing information to accomplish convergence towards common modalities and standards, in cross border supervision of banks, operating in both the countries. It is pertinent to mention here that 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.