Governor of Nepal Rastra Bank, Maha Prasad Adhikari, stated that discussions are ongoing with stakeholders regarding the anarchy prevailing in the banking system.
Speaking at the 58th anniversary of the Agricultural Development Bank in Kathmandu on Monday, he acknowledged the long-term impact of the current anarchy in the banking sector on the country’s economy and expressed confidence that it would be resolved.
He said, “There are anarchic activities aimed at encouraging non-repayment of loans, which have impacted various areas. Despite these challenges, our banking colleagues are working hard. We are constantly informing the relevant authorities about the extent of this anarchy in the banking system and its long-term effects on the national economy. Discussions with stakeholders are ongoing. Such issues do not persist indefinitely; they are resolved over time.”
Additionally, he mentioned that inflation has risen recently and that liquidity in banks has improved, indicating that banks are becoming more organized.
He remarked, “Overall, the fundamentals of the economy look very strong. We are robust in the external sector. Inflation has risen to some extent. The impact of recent floods and landslides has caused an increase in inflation in food and beverages. However, on average, inflation remains within the targets set by Nepal Rastra Bank. Liquidity in banks is excellent, banks are organized, and they are recovering and becoming profitable.”
He also highlighted the recent import of capital goods in the last two months, pointing out the positive aspects and urged people not to feel discouraged given the country’s potential and capacity.
