Khatiwada credited for financial stability

KATHMANDU:

Bankers felicitated former governor of Nepal Rastra Bank (NRB) Yubaraj Khatiwada for completing his tenure and welcomed the newly appointed central bank Governor Chiranjibi Nepal during a function organised here today.

During the programme, bankers sought a facilitative role of the central bank and requested the new governor to hold interactions with bankers prior to introducing new regulations. The bankers also said that the former governor of central bank, Khatiwada, will be credited for ensuring stability in the financial sector.

Appointed governor at a turbulent time, Khatiwada played a crucial role in stabilising the financial sector, according to Rajan Singh Bhandari, immediate past president of Nepal Bankers’ Association (NBA).“When Khatiwada had taken the helm of NRB, it was a turbulent time in terms of macro-economic fundamentals of the country. Back then, the nation had witnessed balance of payment deficit, high inflation and was reeling from the shocks of global financial crisis.”

Former governor Khatiwada said that he was able to improve governance in the financial sector and bring about stability only because of the continuous support and cooperation of the bankers.

“Both the central bank and bankers share many common goals for keeping financial stability, expanding financial outreach and strengthening governance and we’ve done much so far collectively.”

He also said that the new governor is relatively in a comfortable position compared to the situation facing the country when he had been appointed to the role.

Khatiwada, who had been criticised time and again for micro management in the banking sector, today, said that management at micro and macro levels is a double-edged sword.

“Frankly, the central bank doesn’t have the time or the resources for micro-management,” said Khatiwada, adding, “However, it might have seemed like the NRB was doing so in some cases when the central bank cracked down on banks and financial institutions that had failed to utilise the

autonomy extended by law.”Likewise, newly appointed Governor Nepal urged the bankers to adopt self-regulation to gain the confidence of the public.

Source: THT