First Business News Portal in English from Nepal
KATHMANDU: Confederation of Bank and Financial Institutions (CBFIN) have welcomed the monetary policy for the current fiscal year released by Nepal Rastra Bank on Friday.
Issuing a statement, CBFIN has said that the monetary policy has adopted timely policies to maintain economic and financial stability in the country.
CBFIN said that the monetary policy has attempted to bring the declining economy back to the rhythm in order.
“The monetary policy has been focused towards building a self-sufficient economy with special emphasis on increasing production and productivity remains positive overall,” reads the CBFIN statement, adding, “However, 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.”
CBFIN had suggested the central bank that loans flowing from the banks and financial sector should be classified and different interest rates should be maintained for loans going to the productive sector and trade, the development of the productive sector and the loans should be flowed to the productive sector, special priority should be given to export promotion, among others.
Similarly, increase in access to credit for small, domestic, small and medium enterprises, continuation of refinancing in productive sectors including agriculture, exports and the most affected areas yet to recover from the Covid-19 pandemic, continuation of the system where bonds can be counted as deposits, suspension of share trading when banks and financial institutions merge with each other, were among other positive moves from the central bank, as per CBFIN.
“CBFIN is confident that the inclusion of its suggestions, such as the cancellation of regulations, merger opportunities and exemptions for banks and financial institutions, review of credit centralization, and emphasis on increasing financial scope by increasing digital literacy, will provide significant support for the recovery of the shrinking economy,” reads the CBFIN statement.
“CBFIN believes that some of the important suggestions that have been presented by CBFIN based on the ground reality of the country’s economy and which have not been included in the monetary policy will be addressed through future policies and directives.”
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