KATHMANDU, JULY 26
The Confederation of Banks and Financial Institutions Nepal (CBFIN), an umbrella organisation of commercial banks, development banks, and financial institutions, has said that the Monetary Policy 2022-23 released by the Nepal Rastra Bank (NRB) has taken into consideration the effects of the coronavirus pandemic, various world events, country's economic indicators and aspirations of the general public.
Issuing a statement today, the CBFIN said that the Monetary Policy has adopted timely policies to maintain economic and financial stability to bring the declining economy back to track as the important indicators of the economy have been moving in a negative direction.
While stating that the goal taken through the Monetary Policy to build a self-sufficient economy with special emphasis on increasing production and productivity is overall positive, CB- FIN has indicated that the achievement of the goals set by the Monetary Policy and the implementation of some of the measures adopted for the improvement of the current economy will be challenging.
The CBFIN has also expressed gratitude towards the NRB for incorporating the suggestions made by the organisation in the Monetary Policy for the upliftment of the country's economy.
Some of the suggestions put forth by CBFIN included classification of loans from the banks and financial institutions and maintaining different interest rates for loans going to the productive sector and trade, development of the productive sector, special priority for export promotion, necessary amendments to the provision of exemption of services and facilities and foreign investment and foreign loan management regulations, 2021 based on various measures, among others, According to the organisation, increasing access to credit for small and medium enterprises, and scrapping of the provision of halting trading of shares when banks and financial institutions announce merge will provide significant support for the recovery of country's economy.
Likewise, CBFIN has said that the challenge at hand is to increase investment in the productive sector to maintain economic stability, limit inflation within the set target, prop up foreign exchange reserves, maintain the balance of payments, and expand the country's production base.
A version of this article appears in the print on July 27, 2022, of The Himalayan Times.
