Central bank keeps mum on cooperatives
KATHMANDU:
The Monetary Policy for the fiscal year 2011-12 released today is silent on cooperatives supervision and monitoring as spelt by the budget.
The Monetary Policy is supposed to support the budget — the government’s Fiscal Policy — however, the central bank is in a fix by the government obssession to the cooperatives and bringing them under the central bank.
The government has without homework and consultation has asked the central bank to monitor the cooperatives but the banks and financial institutions come under the Nepal Rastra Bank Act, Bafia and Financial Crime Act, whereas the cooperatives are under the Cooperatives Act.
The NRB Act doesnot allow the central bank to monitor let alone punish the cooperatives.
The central bank — the regulatory authority of monetary market — currently supervise and monitor 219 banks anf financial institutions including 31 commercial banks, 87 development bank, 80 finance companies, and 21 micro finance development banks.
At a time, when the central bank has not been able to supervise the banks and financial institutions that it has licenced due to lack of enough manpower has been asked by the government to supervise the cooperatives that could lead to more casualties.
The central bank board members are against the inclusion of cooperatives against the NRB Act under the central bank. The meeting of the board of central bank had heated discussions on the issue of cooperatives as the government has unilaterally imposed the responsibility on it despite its lack of manpower.
Source: THT
The Monetary Policy for the fiscal year 2011-12 released today is silent on cooperatives supervision and monitoring as spelt by the budget.
The Monetary Policy is supposed to support the budget — the government’s Fiscal Policy — however, the central bank is in a fix by the government obssession to the cooperatives and bringing them under the central bank.
The government has without homework and consultation has asked the central bank to monitor the cooperatives but the banks and financial institutions come under the Nepal Rastra Bank Act, Bafia and Financial Crime Act, whereas the cooperatives are under the Cooperatives Act.
The NRB Act doesnot allow the central bank to monitor let alone punish the cooperatives.
The central bank — the regulatory authority of monetary market — currently supervise and monitor 219 banks anf financial institutions including 31 commercial banks, 87 development bank, 80 finance companies, and 21 micro finance development banks.
At a time, when the central bank has not been able to supervise the banks and financial institutions that it has licenced due to lack of enough manpower has been asked by the government to supervise the cooperatives that could lead to more casualties.
The central bank board members are against the inclusion of cooperatives against the NRB Act under the central bank. The meeting of the board of central bank had heated discussions on the issue of cooperatives as the government has unilaterally imposed the responsibility on it despite its lack of manpower.
Source: THT
