Monday, November 22, 2021

Banks want to establish subsidiary in fintech

 Kathmandu, Nov. 17

Nepal Bankers’ Association (NBA) has urged the Nepal Rastra Bank to apply some flexibility in terms of Credit to Deposit Ratio, Liquidity Ratio and Cash Reserve Ratio given the liquidity pressure in the financial system.

In a meeting with Governor of the NRB, Maha Prasad Adhikari, on Wednesday, also requested to review the spread rate, service charge, base rate provisions and methods as well as in the limit of the priority sector investments.

The suggestions also include the demand to review the spread rate for refinancing, and creating provisions to issue convertible debenture, perpetual debenture and SME bond.

The delegation of the NBA led by its newly elected President Anil Kumar Upadhyay, also requested the central bank to allow the banks to establish a subsidiary fintech company to promote digital banking.

The NBA has submitted the suggestions on the eve of the first quarterly review of the Monetary Policy of the Fiscal Year 2021/22.

Governor Adhikari said that the central bank would issue directives in consultation with the concerned stakeholders and assured that appropriate suggestions would be addressed.

Meanwhile, Governor Adhikari is appointed as the Chairman of SAARC Finance. A Governors’ Group Meeting of the association held virtually the other day has elected him to the post.

 Published in The Rising Nepal daily on 18 November 2021. 

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