Kathmandu, July 8
The
Confederation of Bank and Financial Institutions of Nepal (CBFIN) has suggested
the Nepal Rastra Bank to make arrangements to convert the promoter shares into
ordinary shares after 10 years of the concerned company came into operation. It
said that it would make a good impact on the capital market, banking and
overall financial sector.
It
suggested giving the authority to Nepal Stock Exchange Limited to make the
promoter shares immediately tradable without having to take the permission from
the NRB by determining the process of fit and proper test.
Likewise,
it recommended to raise the CD Ratio to 95 per cent to reduce the pressure on
the overall economy and the banking and financial sectors. It also suggested
making arrangements to increase the CD Ratio by 5 per cent from the current 90
per cent on the condition that the loan facility should be made available to
the productive sector.
"Banks
and financial institutions should be allowed to open subsidiaries in order to
operate digital banking services in a sustainable manner," it said.
According
to CBFIN, there should be an arrangement of allowing the deposit of local body
to be calculated as 100 per cent deposit to help in the flow of credit to the
productive sector.
It
suggested bringing attractive schemes to save a certain portion of remittances,
provide special interest rates on remittances, provide special facilities in
insurance, participate in social security funds, analyse one's ability to
return to Nepal and run the industry up to ten times the amount saved.
Providing
concessional loans, reservations in the Initial Public Offerings, attractive
savings for non-resident Nepalis and special schemes to invest in productive
industries are also suggested.
Published in The Rising Nepal daily on 9 July 2022.
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