If capital had not been raised, banks would be in trouble now - Chiranjibi Nepal, Former governor

Jul Sun 2020 09:02:54

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If capital had not been raised, banks would be in trouble now - Chiranjibi  Nepal, Former governor

Former Governor of Nepal Rastra Bank Dr. Chiranjeevi Nepal has said that the autonomy of NRB should be strengthened. Stating that the NRB is capable and autonomous in itself, he expressed concern that the NRB Act Second Amendment Bill could weaken the NRB. He also mentioned that he did not work under any pressure during his tenure. He said that due to the increase in the capital of the banks at that time, the banks would not face any problem due to Corona.

Initially, most of the banks started protesting saying that it was not possible to increase the capital from Rs 2 billion to Rs 8 billion. But over time, the move has been instrumental in saving Nepal's banking finances and boosting investment from the banking sector. If capital had not been increased then, the banks would have come to a standstill in the current difficult situation. Because without sufficient capital, even a bank cannot last long. Despite the protests at that time, all the banks increased their capital. Not only Rs 8 billion but up to Rs 19 billion has been raised. Most of the banks have raised capital of around Rs 10 billion. This ultimately empowered and strengthened the banks.