NRB to chalk out work plan to overcome crisis
KATHMANDU, June 16:
Central Bank governor Dr Yubraj Khatiwada today said that Nepal Rastra Bank is all set to bring a detailed action plan to ease the current liquidity crisis situation better.
Speaking at the Economic and Labour Relation Committee under Legislature Parliament, he also pledged to make the supervision of central bank more efficient.
At the meeting, former finance minister and Constituent Assembly member Dr Ramsharan Mahat asserted that public trust on banks and finance institutions have been declined. “Lack of depositors confidence on banking system has made the crunch more visible and the liquidity outflow to the formal system,” he said, adding that refinancing and repo are not permanent solution.
“The central bank needs to bring a detailed action plan to overcome current ‘crisis’,” he said.
Another committee member and former governor Dr Tilak Rawal said that the country is facing severe financial crisis. “The country has been reeling under double digit inflation since 2004,” he said, blaming the central bank for its failure on inspection and monitoring part effectively.
Responding to the queries from committee member, governor Khatiwada accepted that the inspection and supervision part of the central bank is not as it should have been. “The central bank has to improve both on-side and off-side supervision and inspection to regulate financial Institutions,” he said, adding that supervision capacity of Nepal Rastra Bank has been improving lately.
Constituent Assembly member and entrepreneur Binod Chaudhari blamed the government of demoralising taxpayer and investors. “The state organs have been misbehaving with taxpayers,” he lamented, adding investors have lost their confident and unable to inject liquidity.
Similarly, Diwakar Golchha opined that the economic crisis has emerged due to import-oriented economy. “The government should introduce manufacturing-oriented economy for the longer term solution of economic crisis,” he said.
Speaking at the meeting, finance secretary Krishna Hari Baskota informed that the government is putting its effort to maintain the economic health of the country. “The government has injected liquidity, brought merger policy for the sustainability of financial institutions and working hard on keeping the share market afloat,” he said.
Source: THT
Central Bank governor Dr Yubraj Khatiwada today said that Nepal Rastra Bank is all set to bring a detailed action plan to ease the current liquidity crisis situation better.
Speaking at the Economic and Labour Relation Committee under Legislature Parliament, he also pledged to make the supervision of central bank more efficient.
At the meeting, former finance minister and Constituent Assembly member Dr Ramsharan Mahat asserted that public trust on banks and finance institutions have been declined. “Lack of depositors confidence on banking system has made the crunch more visible and the liquidity outflow to the formal system,” he said, adding that refinancing and repo are not permanent solution.
“The central bank needs to bring a detailed action plan to overcome current ‘crisis’,” he said.
Another committee member and former governor Dr Tilak Rawal said that the country is facing severe financial crisis. “The country has been reeling under double digit inflation since 2004,” he said, blaming the central bank for its failure on inspection and monitoring part effectively.
Responding to the queries from committee member, governor Khatiwada accepted that the inspection and supervision part of the central bank is not as it should have been. “The central bank has to improve both on-side and off-side supervision and inspection to regulate financial Institutions,” he said, adding that supervision capacity of Nepal Rastra Bank has been improving lately.
Constituent Assembly member and entrepreneur Binod Chaudhari blamed the government of demoralising taxpayer and investors. “The state organs have been misbehaving with taxpayers,” he lamented, adding investors have lost their confident and unable to inject liquidity.
Similarly, Diwakar Golchha opined that the economic crisis has emerged due to import-oriented economy. “The government should introduce manufacturing-oriented economy for the longer term solution of economic crisis,” he said.
Speaking at the meeting, finance secretary Krishna Hari Baskota informed that the government is putting its effort to maintain the economic health of the country. “The government has injected liquidity, brought merger policy for the sustainability of financial institutions and working hard on keeping the share market afloat,” he said.
Source: THT
