Monetary policy adopts balanced stance

Kathmandu, July 10

The Confederation of Banks and Financial Institutions Nepal (CBFIN) welcomed the Monetary Policy for the Fiscal Year 2026/27 saying that the Nepal Rastra Bank (NRB) has adopted a balanced stance in the Policy aimed at maintaining price stability, financial sector stability, regulatory simplification and overall economic balance.

"The policy has also introduced various measures that depart from the traditional framework and convey a positive message to the financial system and the private sector," it said in a statement on Thursday.

According to CBFIN, the Policy is forward-looking in terms of the provisions relating to the management of non-performing loans in distressed industries and the revival of stressed loans.

It also welcomes the decision to keep the policy rate, standing deposit facility rate, bank rate, cash reserve ratio, statutory liquidity ratio and standing liquidity facility unchanged in order to support a more predictable business environment and maintain policy stability.

However, it said that certain regulatory facilitation measures concerning capital adequacy, and improvements in prudential regulation in line with international practices have not been addressed by the policy.

But it expressed hopes that the central bank will undertake the necessary studies and address these recommendations in a practical manner through forthcoming unified directives.

"CBFIN maintains that these recommendations would significantly contribute to addressing Nepal's current economic challenges, the growing capital pressure on the banking sector, the management of non-performing loans, more effective flow of credit to the private sector and the achievement of the government's economic expansion objectives," read the statement. 

Published in The Rising Nepal daily on 11 July 2026.