Nepal Bankers' Association urged to finance minister to make the economy sustainable

KATHMANDU:The Nepal Bankers' Association (NBA) has asked that the newly appointed Deputy Prime Minister and Finance Minister, Bishnu Paudel, implement a program to make the economy viable.

The NBA's team visited the Ministry of Finance on Tuesday and thanked Poudel, informing them that, while the bank's interest rate is constantly lowering, loan distribution is extremely slow, and requesting that a program be developed to help the economy work smoothly. Sunil KC, the NMB's president, stated that the market was not working due to a decrease in credit expansion.

In the previous fiscal year, the target for loan investment was 5. 63 trillion rupees, but only 2. 80 trillion rupees were received. Deposits have surged by 7.12 trillion rupees in a single year.

Officials of the NMB informed about the public's negative perception of the financial sector, targeted attacks on banks and financial institutions, declining bank profitability, and increasing bad loans, and stated that the banking sector is ready to assist the government in achieving financial stability and economic development.

According to a news statement released by the NMB, Minister Paudel responded by stating that the government will take steps to address the issue, citing a decline in entrepreneurial confidence as the cause of economic stagnation. He urged for optimism over the economy's future and declared that the government will strictly enforce nonpayment of bank and financial institution loans.