Anarchic activities affecting credit expansion, recovery: Governor Adhikari

Himal Press 03 Mar 2024
Anarchic activities affecting credit expansion, recovery: Governor Adhikari काठमाडौँ, २० फागुन : अर्थ समिति बैठक संघीय संसद प्रतिनिधिसभा अन्तर्गतको अर्थ समितिको आइतबार सिंहदरबारमा बसेको बैठक । तस्बिर : प्रदीपराज वन्त/रासस

KATHMANDU: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has insisted that all banks in the country are safe.

Speaking in the meeting of the Finance Committee of the House of Representatives on Sunday, Adhikari said since the central bank was looking after monitoring and supervision of banks and financial institutions it can assure that all Nepali banks are safe.

“However, banks are facing some difficulty in recovery of loans due to rumors being spread by some people that loans will be waived off,” Adhikari said. “These rumors have affected both credit expansion and recovery.”

Adhikari said anarchic activities have brought down the morale of the banking sector. “Banks will not be able to extend and recover loans if such activities are not controlled. The state should control such preemptive attacks aimed at weakening the banking sector and the regulatory agency,” he added.

According to Adhikari, the banking sector has a liquidity of Rs 600 billion, while the non-performing loans of banks have reached 3.4%.

Published On: 03 Mar 2024


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