The banks interest rate is not going up down gradually - Governor, Maha Prasad Adhikari

Mar Tue 2023 01:04:50

571 views

The banks interest rate is not going up down gradually - Governor, Maha Prasad Adhikari

Kathmandu. Mahaprasad Adhikari, the Governor of Nepal Rastra Bank, has claimed that Nepal's banks have been saved from sinking because he made the right decision at the right time. He made this claim while speaking at an event held in Kathmandu.

He said this while the bankers were complaining that the new system related to the loan-deposit ratio (CD) ratio introduced by the National Bank has made them vulnerable.

Addressing the general concern that the current problems in American and European banks will affect the Nepali banking sector as well, he clarified that the current problems in foreign banks will not affect Nepal. He also informed that Nepal has no investment in those banks.

He also complained that he was insulted a lot even when he was doing good work as the leader of the National Bank. He pointed to the participants of the program and said, "Perhaps I have been abused the most among those present here." There is no one else who has been scolded as much as I have. However, I have been scolded while doing good work.

He expressed doubt that the economic growth rate will be as expected by everyone now. He said, 'The economic growth rate may not be as we thought.

He insisted that Nepal's economic index has not deteriorated so much. He said that all the indicators are positive. Similarly, he said that since the remittance migration is good, it has also helped in the improvement of the external sector. In addition to this, he said that recently the policy of merger was introduced to prevent the unhealthy competition of financial institutions.

Similarly, he informed that since the interest rates have started decreasing since last month, they will not increase anymore. Governor Adhikari said, 'As liquidity becomes easier, banks have started reducing interest rates. The process of interest rate reduction has already started from last month. In the coming days, the interest rate will not go higher than this. It gradually decreases.

According to him, the numerical growth of microfinance has been very high in the last decade. When it is numerically more, it is found that loans are given only to reach the target. This may cause some problems. However, the National Bank is working to ensure that everyone should not be aggravated because of such distortions.