KATHMANDU: Major banking sector umbrella organisations have expressed objection over the arrest of Nepal Investment Mega Bank (NIMB) Chief Executive Officer Jyoti Prakash Pandey.
In a joint statement issued on Thursday, the Nepal Bankers’ Association, Development Bankers Association Nepal, Nepal Financial Institutions Association, and Nepal Microfinance Bankers Association said they had taken serious note of the arrest.
The associations stated that institutions like banks operate on public trust as they collect public deposits, and actions such as the arrest of a chief executive in connection with loan recovery issues could negatively affect the reputation and stability of the banking sector.
“The arrest of a chief executive officer of such an institution, which operates on public trust through deposit mobilisation, may damage the bank’s credibility and even affect its stability,” the joint statement read.
The organisations have urged authorities to follow what they described as a “listen and release” principle while conducting investigations, ensuring that if necessary, the CEO is released on bail and allowed to participate in the investigation process without being kept in custody.
They also emphasised that investigations should be carried out in a way that preserves the dignity of both the banking sector and senior executive positions.
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