Governor of Nepal Rastra Bank Maha Prasad Adhikari has instructed the banks and financial institutions to exercise restraint while adjusting the loan investment and interest rate to solve the liquidity problem.
Addressing the annual assembly of the Nepal Bankers Association on Tuesday, Governor Adhikari said that banks need to exercise restraint to solve the liquidity problem seen in the banking sector recently.
He further added that the problem was due to the economic recovery after COVID-19 pandemic.
Governor Adhikari urged the banks and financial institutions not to work ignoring the expectations of the consumers and stakeholders by finding loopholes in the Acts and Rules of NRB and misinterpreting them.
He emphasized the need for banks to look at the market and consumers. He warned the banks that doing so would add to the risk to the financial system.
Stating that the NRB was compelled to intervene due to the unhealthy competition of banks, he also urged to work in such a way as not to allow interference.
Stating that the banks should help in making the banking system efficient, Governor Adhikari said that there was unhealthy competition in the name of competition as banks had to run from the competition.
