Governor of the Nepal Rastra Bank ( NRB), Dr. Yubaraj Khatiwada has said
that banks and financial institutions should not increase loan
interest rates every month.
At a discussion programme on Wednesday with officials of banks and financial institutions on monetary policy of the current fiscal year made public by the NRB on Sunday, he said the bank interest rate should not be increased “like the price of vegetables.”
At the programme organised by the Independent Business News (IBN), he urged the banks and financial institutions to correct themselves from the tendency of taking high interest rates in loans and giving low interest in deposits.
Khatiwada said the monetary policy was aimed at attaining 5.5 percent economic growth rate and limiting inflation to 8 percent.
Nepal Banker Association Chairman Rajan Singh Bhandari said loans could be flowed to attain the growth if investment climate was created.
Economist Keshav Acharya expressed doubt over monetary policy despite it being “somewhat flexible.”
IBN Managing Director Hridayaraj Gautam said the monetary policy was directed towards achieving targeted growth by flowing more loans in productive sectors like agriculture and energy.
Parshuram kunwar representing the banking sector presented a working paper on banks and financial sector.
src THT
At a discussion programme on Wednesday with officials of banks and financial institutions on monetary policy of the current fiscal year made public by the NRB on Sunday, he said the bank interest rate should not be increased “like the price of vegetables.”
At the programme organised by the Independent Business News (IBN), he urged the banks and financial institutions to correct themselves from the tendency of taking high interest rates in loans and giving low interest in deposits.
Khatiwada said the monetary policy was aimed at attaining 5.5 percent economic growth rate and limiting inflation to 8 percent.
Nepal Banker Association Chairman Rajan Singh Bhandari said loans could be flowed to attain the growth if investment climate was created.
Economist Keshav Acharya expressed doubt over monetary policy despite it being “somewhat flexible.”
IBN Managing Director Hridayaraj Gautam said the monetary policy was directed towards achieving targeted growth by flowing more loans in productive sectors like agriculture and energy.
Parshuram kunwar representing the banking sector presented a working paper on banks and financial sector.
src THT
