Governor's Discussion with Bank CEOs at Nepal Rastra Bank

Governor Maha Prasad Adhikari of Nepal Rastra Bank (NRB) met with the Chief Executive Officers (CEOs) of various banks. The CEOs were invited to NRB at the governor's request on Tuesday. Governor Adhikari called the bankers to NRB to discuss the topics to be included in the monetary policy.

Suggestions for Monetary Policy

Although the Nepal Bankers Association had already formally submitted written suggestions and demands for the monetary policy to NRB, the governor invited the bankers to NRB to discuss any missed or essential topics.

Additional Suggestions from Bankers

Bankers presented an additional important suggestion to NRB:

Recovery Issues: Due to current recovery problems, bankers requested an extension of the financial statement deadline. NRB has arranged for interest income and loan recovery amounts to be included in the financial statements 15 days after the fiscal year ends.

Bankers' Demands

Bankers made the following demands to Governor Adhikari:

• Spread Rate, Capital Charge, Capital Fund Management: Requests for facilitation in these areas.

• Provisioning of Good Class Loans: The current ratio of 120% should be maintained at 75%.

• Policy for Recovering Outstanding Amounts: An effective policy should be introduced.

• Loan Approval Process: Policies should be introduced to simplify the cumbersome process.

Governor Adhikari's Stance

Governor Maha Prasad Adhikari expressed his intention to make decisions that do not adversely affect the banks as much as possible. He also mentioned coordinating and collaborating with NRB staff to consider extending the deadline until the end of Shrawan (mid-August).

Conclusion

This discussion is expected to strengthen coordination and cooperation between banks, financial institutions, and NRB. Governor Adhikari has shown a positive attitude toward incorporating the bankers' demands into the monetary policy for the fiscal year 2081/82.

What Are Your Thoughts?

How do you think this discussion between Nepal Rastra Bank and the CEOs of banks will impact Nepal's banking system? You can share your thoughts below.