Banking sector is most transparent: Manandhar

Kathmandu, November 16:

Six commercial benches to be set up soon, says CJ

Bankers and experts — speaking at a book launch programme here in the valley today — agreed that banking industry is the only sector that is transparent and corporatised thanks to Nepal Rastra Bank (NRB) for its effective and efficient regulatory and monitoring system.

“All the other sectors, except the banking sector, are neither transparent nor have good

corporate governance,” Krishna Bahadur Manandhar, acting governor of the NRB said adding that though the central bank is blamed for protecting banking sector, it is a very serious issue that effects a large mass.

“Banks are not the properties of bankers and promoters, rather its of the depositors,”

the chief of the regulatory authority said.

“On one hand some banks try to misuse depositors’ hard-earned money and on the other they think that the central bank is trying to impose good governance on them.

“But without good governance no public institutions can run,” he said, adding that some of these public institutions are still trying to function like a private ones by misinterpreting the regulation that needs to be checked.

Anil Shah, chief executive officer (CEO) of the Nabil Bank Ltd that has organised the launching programme as its corporate social responsibility (CSR) agreed. “NRB is the best regulator in the country,” he said adding that due to the central bank’s stringent measures the Nepali banks are more transparent than any other sectors in the country.

He also praised the role of the central bank for its effective monitoring in safeguarding the interest of the depositors. “There might be some party-spoilers but majority of the banks are following the central banks regulations,” he added.

Earlier, chief justice Kedar Prasad Giri launching the book at the programme, said that Suprem Court is soon setting up six commercial benches in different places.

“We are finalising the plan of setting up of commercial benches. The setting up of these benches will help solve the disputes related to corporate good governance,” Giri said.

He emphasised the need of restoring corporate governance in all the sectors in the country. “The banks should function according to modern corporate jurisprudence

and respect the corporate values,” Giri said adding that there should be a proper legal mechanism to check the irregularities in the banking and financial sectors in the post-liberal economy.

Advocate Bharat Raj Uprety, who has authored the book ‘Company Law’, shared his experience of how the book was written some 22 years ago and how it is reproduced now.