President Bidya Devi Bhandari has said proper mobilisation of capital is essential to the economy oriented to self-reliance. The President made such a remark at the third annual general meeting (AGM) of the Confederation of Banks and Financial Institutions Nepal (CBFIN) in Kathmandu.
“Building a self-reliant economy is the present need while promotion of small and cottage industries is equally important to boost domestic productions,” President Bhandari said, adding that the development of entrepreneurship helps create jobs.
She suggested that banks and financial institutions (BFIs) not stick to profit only but also pay heed to social responsibility. Proper mobilisation of capital from the banks should create a positive impact on development and employment generation.
On the occasion, former finance minister Dr Yubaraj Khatiwada opined that BFIs made noticeable progress in a decade in Nepal. “People have the trust that money deposited in BFIs will not ruin. The BFIs have increased capital and progress has been made on the technological side too,” he analysed.
Dr Khatiwada further said strict licensing policy, financial literacy, and area-wise loan by the BFIs have positive consequences. He suggested the BFIs increase the quality of loans rather than size.
Similarly, Nepal Rastra Bank Governor Maha Prasad Adhikari admitted that the national economy witnessed impact of the global economy, and warned of challenges in the days ahead.
CBFIN President Pawan Kumar Golyan said the general people believed that BFIs were imposing huge interest rates. He also reminded, “BFIs are transparent. They have been releasing the financial details every three months.” He however said that industries were adversely impacted by the rise of interest rates on bank loans.
