KATHMANDU: Governor Maha Prasad Adhikari of the Nepal Rastra Bank (NRB) has assured that there are no issues within the banks and financial institutions under the regulatory authority of the central bank.
Taking part in a discussion program organized by in Kathmandu by the Nepal Bankers’ Association, Governor Adhikari emphasized the robust regulatory structure and the financial foundation of banks.
He expressed that despite the current economic challenges, banks are operating securely.
Governor Adhikari acknowledged the impact of the ongoing economic downturn on the financial health of banks and financial institutions but emphasized that they are not in a situation where they would drown.
He urged everyone to focus on collaborative problem-solving, emphasizing the need for collective efforts to address the current challenges.
Regarding the construction sector’s issues, Governor Adhikari pointed out that specific institutions with regulatory authority need to be established to address problems in the cooperative sector.
He suggested the creation of specialized institutions with regulatory power to tackle challenges faced by the construction industry.
While addressing the economic contraction witnessed across various sectors, Governor Adhikari assured that Nepal is not the only country facing this, and the global economic downturn has affected worldwide growth and increased currency depreciation.
Despite the economic challenges, he mentioned ongoing improvements and reforms in various sectors.
Governor Adhikari stated that despite the substantial loans taken in the COVID pandemic, the ability of borrowers to repay remains challenging, particularly in the absence of anticipated profits from their businesses.
He also touched upon the growing remittance sector and increased foreign exchange reserves, contributing to the ease of Nepal’s economic situation.
As the economic crisis unfolds, Governor Adhikari highlighted the need for a collaborative effort to address issues arising in the banking and financial sector.
He acknowledged that despite the challenges faced by individual banks, the banking sector as a whole in Nepal is considered one of the best in South Asia.
In conclusion, Governor Adhikari reiterated the stability in interest rates and the resilience demonstrated by the banking sector during these challenging times.
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