KATHMANDU: Prime Minister Pushpa Kamal Dahal has said that the role of banks and financial institutions is vital to establish financial inclusion in Nepal.
[caption id="attachment_32287" align="alignnone" width="1000"]
Prime Minister Pushpa Kamal Dahal inaugurates the integrated transactions of the Global IME and the Bank of Kathmandu in Kathmandu, on Monday, January 9, 2023. Photo: RSS[/caption]
During a launching ceremony of the integrated transactions of the Global IME and the Bank of Kathmandu on Monday, PM Dahal said the foundation for financial inclusion could be prepared and consolidated by ensuring easy access of entire communities to banking services.
The Prime Minister on the occasion stressed the need for results-oriented delivery to address existing issues in the economy.
“The very first meeting of the Council of Ministers of the incumbent government decided to make efforts for balanced implementation of the financial and monetary policies to make the economy vibrant and to cooperate and collaborate with the private sector to seek solutions to the current economic issues collectively,” the PM Dahal said.
[gallery columns="1" link="file" size="full" ids="32290,32288"]
He opined that it may be easier for BFIs to manage resources for big projects and to enhance organisational efficiency with the enforcement of a merger. “More the merger, it will contribute to discouraging unhealthy competition in the relevant sector. But our concern should be for ensuring unhindered access of people to quality services,” he asserted.
Stating that the banking sector had a significant role in making remittance transactions reliable and safe, the Prime Minister echoed the need for exploring ways for financial innovations, promoting people’s financial accessibility and literacy, and increasing self-employment opportunities for them.
Stating that there had been confusion and problems in the private sector due to economic problems lately, Chief Secretary Shanker Das Bairagi said the government was serious and would take effective steps in increasing their morale. "There have been positive indications in the country's economy. There is no point wherein the private sector should be in fear. The government prioritises them."
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said the merger process was pursued following increasing unhealthy competition and operative expenditures of financial institutions. This will have significant reforms in the banking sector, he expressed hope.
"There were problems, including more operating costs and increased unhealthy competition when there were many institutions. The BFIs will be healthier and secure when their number decreases," Governor Adhikari said. He urged the BFIs to be focused on self-regulation and increasing national production by prioritising smaller loans.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Shekhar Golchha said the government and the NRB should pay attention mainly to three topics for improving the deteriorating national economy.
"First, the public expenditure should be increased; second, the monetary policy should not be tight but also flexible considering the business risks on the investments; and third, an investment-friendly environment should be created for the private sector," he maintained.
According to him, positive impact on the economy will not be seen unless the government ramps up the development expenditure. Stating that BFIs are the backbone of the economy, Golchha said the profit of banks should also be seen by linking it with their investments.
Confederation of Nepalese Industries (CNI) President Vishnu Kumar Agarwal said the private sector's present expectation from the government and the central bank is a decrease in the interest rate and ease of liquidity.
"To be a large bank entailed a bigger responsibility as well. It will be easier for industrialists and businesspersons if the interest rate lowers now. Initiatives should be made for investing in the productive sectors when the liquidity is adequate," he said. CNI President Agarwal added that it will contribute to national capital formation and the government's achieving the targeted revenue when the BFIs increase investment in the productive sectors.
In the inauguration of the integrated transactions, Global IME Bank's Chairman Chandra Prasad Dhakal said the Global IME has succeeded in becoming the largest bank in the country by merging and acquiring 21 various BFIs so far with the objective of bringing constructive and qualitative change in the BFI sector.
"This institution has been formed with the merger so far of five commercial and 10 development banks and six financial institutions. Global IME has now become Nepal's biggest bank in terms of most financial indicators such as capital, deposits, loans and branch network," he said.
With the beginning of unified transaction with Bank of Kathmandu, the Global IME Bank has a total capital fund of Rs 57 billion, a total deposit of Rs 410 billion, total loans of Rs 400 billion, total assets of Rs 500 billion and 1,100 branches. The Bank has three foreign contact offices while its branches are spread in all the districts across the country.
READ ALSO:
Prime Minister Pushpa Kamal Dahal inaugurates the integrated transactions of the Global IME and the Bank of Kathmandu in Kathmandu, on Monday, January 9, 2023. Photo: RSS[/caption]
During a launching ceremony of the integrated transactions of the Global IME and the Bank of Kathmandu on Monday, PM Dahal said the foundation for financial inclusion could be prepared and consolidated by ensuring easy access of entire communities to banking services.
The Prime Minister on the occasion stressed the need for results-oriented delivery to address existing issues in the economy.
“The very first meeting of the Council of Ministers of the incumbent government decided to make efforts for balanced implementation of the financial and monetary policies to make the economy vibrant and to cooperate and collaborate with the private sector to seek solutions to the current economic issues collectively,” the PM Dahal said.
[gallery columns="1" link="file" size="full" ids="32290,32288"]
He opined that it may be easier for BFIs to manage resources for big projects and to enhance organisational efficiency with the enforcement of a merger. “More the merger, it will contribute to discouraging unhealthy competition in the relevant sector. But our concern should be for ensuring unhindered access of people to quality services,” he asserted.
Stating that the banking sector had a significant role in making remittance transactions reliable and safe, the Prime Minister echoed the need for exploring ways for financial innovations, promoting people’s financial accessibility and literacy, and increasing self-employment opportunities for them.
Stating that there had been confusion and problems in the private sector due to economic problems lately, Chief Secretary Shanker Das Bairagi said the government was serious and would take effective steps in increasing their morale. "There have been positive indications in the country's economy. There is no point wherein the private sector should be in fear. The government prioritises them."
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said the merger process was pursued following increasing unhealthy competition and operative expenditures of financial institutions. This will have significant reforms in the banking sector, he expressed hope.
"There were problems, including more operating costs and increased unhealthy competition when there were many institutions. The BFIs will be healthier and secure when their number decreases," Governor Adhikari said. He urged the BFIs to be focused on self-regulation and increasing national production by prioritising smaller loans.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Shekhar Golchha said the government and the NRB should pay attention mainly to three topics for improving the deteriorating national economy.
"First, the public expenditure should be increased; second, the monetary policy should not be tight but also flexible considering the business risks on the investments; and third, an investment-friendly environment should be created for the private sector," he maintained.
According to him, positive impact on the economy will not be seen unless the government ramps up the development expenditure. Stating that BFIs are the backbone of the economy, Golchha said the profit of banks should also be seen by linking it with their investments.
Confederation of Nepalese Industries (CNI) President Vishnu Kumar Agarwal said the private sector's present expectation from the government and the central bank is a decrease in the interest rate and ease of liquidity.
"To be a large bank entailed a bigger responsibility as well. It will be easier for industrialists and businesspersons if the interest rate lowers now. Initiatives should be made for investing in the productive sectors when the liquidity is adequate," he said. CNI President Agarwal added that it will contribute to national capital formation and the government's achieving the targeted revenue when the BFIs increase investment in the productive sectors.
In the inauguration of the integrated transactions, Global IME Bank's Chairman Chandra Prasad Dhakal said the Global IME has succeeded in becoming the largest bank in the country by merging and acquiring 21 various BFIs so far with the objective of bringing constructive and qualitative change in the BFI sector.
"This institution has been formed with the merger so far of five commercial and 10 development banks and six financial institutions. Global IME has now become Nepal's biggest bank in terms of most financial indicators such as capital, deposits, loans and branch network," he said.
With the beginning of unified transaction with Bank of Kathmandu, the Global IME Bank has a total capital fund of Rs 57 billion, a total deposit of Rs 410 billion, total loans of Rs 400 billion, total assets of Rs 500 billion and 1,100 branches. The Bank has three foreign contact offices while its branches are spread in all the districts across the country.
READ ALSO:
Published Date: January 10, 2023, 12:00 am
Post Comment
E-Magazine
Click Here To Read Full Issue
RELATED B360 National
