Banks have more liquidity and monetary policy has addressed: Prakash Sharan Mahat, Finance Minister

Jul Fri 2023 04:46:49

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Banks have more liquidity and monetary policy has addressed: Prakash Sharan Mahat, Finance Minister

Kathmandu: Finance Minister Dr. Prakas Sharan Mahat said that financial institutions should be able to regulate themselves by being conscientious about their responsibilities. In a social dialogue program on "Challenges, Solutions and Future Directions of Nepal's Financial Sector" organized by the National Committee of the Nepal Financial Institution Employees Association, Minister of Finance Dr. Mahat said, "If organizations move forward with the feeling that organizations are not formed only for their own interests, but to make our members responsible and conscientious, it will give positive results." Minister Dr. It was an important emphasis. He said, "If interest rates and other issues are decided by negotiation, sooner or later it will create problems." Healthy competition in the financial sector is very important.

Monetary policy means that the target of credit growth should be at least 12 percent. According to Nepal Rastra Bank, inflation has come within the limit in the month of May. Inflation in India is also less than 6 percent. Now, since inflation is on the decline, the National Bank does not need to keep the policies taken in the current year, but it is our demand that they should be relaxed in the coming year. Even before controlling the real estate and stock market, it is important to evaluate its benefits. If there is a concern that credit expansion will go to unproductive areas, it can be done by giving instructions to the banks.

- Rajesh Aggarwal, President of CNI

In real estate transactions, the 'loan to value' ratio has been reduced and sales have also been stopped, while the weighted risk average has also been increased in the case of share loans. This is also one of the reasons why there are problems in cooperatives now. In order to keep the market running, of course, some degree of loose policy should be made for real estate and stock market as well.

There are many financial institutions, even small financial institutions have assumed a large form. Some financial institutions have gone beyond the control of depositors. Stating that the National Bank will take a proper decision in this regard, he said, "In the current environment, we are in some trouble, but we are also in the process of getting out of this problem."According to the latest data, the price increase is decreasing.

To come below 7 percent, our goal is to bring it down to 6.5 percent next year.''Rastra Bank was worried that easing the monetary policy would lead to problems in inflation. But I think that the latest index will help to ease the monetary policy. Stating that the objective of monetary policy is not only to control the price increase, but also to stabilize and increase the overall economy. Mahat said, "The monetary policy that will come at the beginning of the next fiscal year will address these issues."