'Attacks on BFIs are worrying'

KATHMANDU: Nepal Bankers' Association President Santosh Koirala has said the attacks on banks and financial institutions (BFIs) for political interests are worrying.

Speaking at a programme organised by the Society of Economic Journalists‑Nepal (SEJON) on 'Banking sector and way forward', Koirala said the financial and banking sector is facing challenges following intimidation of bank employees over loan issues. "The issues of loan giving and taking are clearly set out in the law, but the bank employees are being attacked over it," he reminded.

Koirala complained that some people were falsely promising loan exemptions, which he described as misleading. "The banking sector is more transparent than other sectors. If the banking sector faces problems, it creates ripple effects," he argued.

According to him, BFIs have created jobs for over 50,000 people. He said that although there is adequate liquidity in the banking sector, demand is declining.

Noted economist Dr Rewat Bahadur Karki said there was greater regulation by Nepal Rastra Bank and that NRB's rules should be more liberal.

By RSS