Kathmandu, Dec. 19
Governor of the Nepal
Rastra Bank (NRB), Maha Prasad Adhikari, has said that the policy implemented
by the Nepal Rastra Bank (NRB) aimed at strengthening the banking sector in
Nepal and they were not intended to create trouble in the industry.
Speaking at the Annual
Meeting of the Nepal Bankers' Association (NBA) on Wednesday evening, he said
that the banking sector in the country is more transparent than any other
sector of business.
Governor Adhikari also
expressed hopes that the banking business will witness good days in the days to
come.
He refuted the banks'
statement that they couldn't distribute dividend due to the policy of the
central bank and said that the distribution of dividend is based on the
capacity of the individual company.
"The NRB accords
priority to the financial stability in the country rather than micro-managing
the banks and financial institutions," he stated.
According to Governor
Adhikari, since there is sufficient liquidity in the financial system while the
financial indicators are also good, there is no serious threat to the industry.
However, increasing non-performing loan portfolio has created risks to the BFIs
so they need to pay more attention to credit recovery, he said.
The annual meeting has
elected a new working committee of the association of the 20 class 'A'
commercial banks in the country under the leadership of Santosh Koirala, Chief
Executive Officer of Machhapuchchhre Bank Limited. He was serving as the Vice-President
of the association.
Likewise, Surendra
Ragmi, CEO of the Global IME Bank Limited, is elected as the Vice-President.
Members of the NBA are Tilak Raj Pandeya of Nepal Bank, Ram Chandra Khanal of
Kumari Bank, Ashok Sherchan of Prabhu Bank, Nischal Raj Pandey of Sanima Bank,
Sanjeev Manandhar of Prime Commercial Bank, Sundar Prasad Kandel of Siddartha
Bank and Sudesh Khaling of Everest Bank.
Immediate Past
President Sunil KC will remain as an ex-officio member in the working committee
while Ashok Shumsher JBR and Gyanendra Prasad Dhungana are the advisors.
Outgoing President of
the NBA, Sunil KC, highlighted the contribution of the banking sector to the
national development and financial inclusion with the expansion of branches to
all 753 local units. He appreciated the role of the NRB in timely regulation
which resulted in the BB- in the sovereign country rating.
"However, political instability, economic slowdown and decreasing credit demand has negatively impacted the banking industry. Quick fluctuations in the liquidity has also posed threats to the stability of the financial system," said KC.
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