•      Fri Jun 21 2024

Monetary policy is positive one: Chairman KC

Kathmandu, July 23: President of Nepal Bankers Association, the umbrella organization of Nepalese private sector commercial banks, Sunil KC has responded that the monetary policy is positive one.

He was responding about the newly unveiled monitory policy for FY 2023/24 by Nepal Rastra Bank (NRB).  He said that the problems seen in the world economy are still remaining and the problems and challenges in the Nepalese economy are still there, so the monetary policy has come to balance the uneven situation.

He further said that the NRB has assured to review about the arrangements related to current capital loans, share mortgage loans, real estate loans and hire purchase loans.  He expected that the change would have a positive effect on lending when there was a problem in getting loans due to the current capital credit guidance. He said that linking KYC with National Identity Card, making banking offenses stronger and creating a framework for credit investment will make the banking sector feel easier.

He further said, “The target is to increase credit disbursement in the private sector by 11 percent. That too is about to be completed. Bringing the banking policy rate to 6.5 percent will reduce the cost of the banks as the permanent liquidity facility of the banks and the overnight liquidity interest at the policy rate will be reduced. There is also the challenge of making the economic sector viable. It will become known as the rest of the procedures are made.”