Kathmandu, Apr. 27: A
branch of a Bank and Financial Institution (BFI) in the country is catering to about
3,560 people on an average.
The number of the
branches of the BFIs has reached 8,205 by the end of the first eight months of
the current fiscal year 2018/19 and about 25.7 million bank accounts have been
maintained in them, said Governor of the Nepal Rastra Bank (NRB) Dr. Chiranjibi
Nepal.
He was speaking at the
64th anniversary of the central bank at its premises in Baluwatar on
Saturday.
"We have given
topmost priority to the expansion of banking services across the country as per
the policy of the government to have at least a branch of the commercial bank
in each local level," he said.
The number of branches
of the class 'A' commercial banks has almost doubled in the last couple of
years, and they have reached 724 local levels.
Governor Dr. Nepal said
that by mid-March 2019, the BFIs have mobilised the deposits of Rs. 3,009
billion and loans equal to Rs. 2,749 billion. The size of deposits is equal to
87 per cent of the estimate Rs. 3,464 billion Gross Domestic Product (GDP) of
the country in 2018/19.
To increase the
expansion of financial services and financial inclusion, the central bank has
adopted the policy to promote branch opening in the remote districts, mobilise
loans in the priority sectors such as agriculture and hydropower, refinancing
and deprived sector lending.
At the same time, the
central bank has changed its organisational structure and is establishing
offices in all States. "We have started this new initiative from
Karnali," said Dr. Nepal.
He also said that the
high growth trajectory in the past three consecutive years had indicated the
potential of high productivity in the country.
Former Governor of the
NRB Satyendra Pyara Shrestha suggested the banking sector regulator to be
vigilant about the depleting reserves of the foreign currency.
"The external
sectors such as foreign trade and remittance seem less reliable and can create
challenges in the future. Therefore, the NRB should be proactive in managing
the balance of payment," he said.
The central bank has
felicitated Shrestha.
President of the Nepal
Bankers Association (NBA) Gyanendra Prasad Dhungana recommended the NRB to give
priority to the resolution of the prolonged liquidity crisis since it was facing
pressure on the interest rates.
President of Nepal
National Employees Association--Nepal Rastra Bank, Resham Raj Regmi, said that
the central bank needed to preserve its autonomy.
"Challenges will arise
in the future if we fail to save the spirit of the central bank," he said.
Published in The Rising Nepal daily on 28 April 2019.
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