सिंहदरबार संवाददाता
Kathmandu. Work is being done to formulate laws from the monetary policy for the problems within the banking system. The work of drafting laws is being done from within the National Bank. The task force within the National Bank is doing that work.
We have said that the main problem of recovery in the banking sector is to formulate laws in the monetary policy itself. Then it becomes easy to move bad loans to another pocket. Complete recovery is not possible. We are making laws for asset management companies. We are making drafts. The problem of recovery is intertwined with the slow-down economy. As this improves, the recovery of banks will also improve.
It is not that the NPA level of banks will always go up. We hope that it will improve gradually. All these things will go in a positive way. Reforms will have a positive impact on the profitability of banks. The National Bank has stabilized the banks by managing the pressure on the banking industry through consultation or using various instruments. We have made them immune to even the smallest shocks. We should move forward with that.
Nepal’s banking sector should be considered good because it is strong. At this time, banks should provide counseling, concessions, and whatever the bank does to help customers. Banks should do that. The role of the banking sector is to provide a little counseling to its customers, add facilities, and tell them what to do, so that it becomes easier for the customer.
Let’s say a customer is a 40-50 year old entrepreneur. If he is blacklisted on the basis of his technical skills, his whole business will be closed. He has been running his business for so many years by taking a loan from the bank. Due to the impact on the economy and the weakness in his financial planning, he may be forced to exit the business. In such a situation, the banker has an important role. No, my job is not to give loans. Here, businessmen do not work according to a plan. There are those who do work after getting a job. If the banks provide a little counseling, that debtor can survive.
Banks should not blacklist a person due to technical weaknesses. Banks’ job is only to give loans. It cannot be said that they do not understand the difficulties faced by businessmen. Banks can survive by counseling the loan. Businessmen’s business can be saved. If we look at the complaints that come to us, there are many of this nature. I would like to say especially to my friends from the Bankers Association. Not only in financial matters. He also urged his employees to engage in counseling work. This seems to be of great help.
Foreign exchange reserves and liquidity in banks are decreasing. Imports and exports have increased well in the last two months of Mangsir and Poush. It is much higher than the average. The average import of the last two years is 130 billion per month, but now it has reached 161 billion in Poush alone. Some activities have started to increase within this. Capital goods are also coming into exports, which will help in fixed capital formation tomorrow.
It helps in the economic development of the country in the long term. It seems that some such goods have been exported. Exports also seem to have increased due to the increase in palm oil exports. We see that imports and exports of some palm oil, soybean oil, and soybean meal have also increased.
We can expect that the slowdown in the economy will gradually decrease. The Nepal Rastra Bank has done its utmost to solve the problems seen in the construction sector through monetary policy. This has provided some relief to construction entrepreneurs, but the issue of payment is still ongoing. The weakness in the government’s spending mechanism still persists. There is still a tendency to spend at the end of the fiscal year. We need to increase that.
(Thoughts expressed by NRB Governor Mahaprasad Adhikari at an interaction program on contemporary banking topics organized by Economic Media Society Nepal)
प्रतिक्रिया दिनुहोस्