Political Threats stymied efforts to maintain fiscal discipline: Guv
KATHMANDU, SEP 14 -
Nepal Rastra Bank (NRB) Governor Yubaraj Khatiwada said on Tuesday that he received ‘political threats’ while trying to maintain fiscal discipline and sought help from the parliamentary Public Account Committee (PAC).
Khatiwada made this startling revelation when he was criticised by the lawmakers at a PAC meeting for the central bank’s poor performance in maintaining fiscal discipline. “Even I received threats,” said Khatiwada. “I need your (lawmakers’) support. Governor alone cannot do much.”
Lawmaker Rabindra Adhikari and Rajendra Khetan said the central bank failed to ensure security of common people’s deposits and invited economic crisis by issuing a large number of bank licence, making supervision tough.
While Lawmaker Dhanraj Gurung said the huge investment in unproductive sectors like real estate was due to NRB’s policy, Lawmaker Prakash Chandra Lohani said NRB’s management did not give much attention to Madyamanchal Gramin Bikas Bank even when the bank is on the verge of collapse. Rastriya Banijya Bank (RBB) holds 75 percent stake in the bank.
Khatiwada, however, made clear that financial criminals will not get amnesty like in the past. “We’re carrying out our supervision,” said Khatiwada. “Nobody will get amnesty.”
Khatiwada said NRB has stopped issuing licences to A, B and C class banks and financial institutions (BFIs) and licences for D class FIs are being issued for areas where there are no BFI branches. He informed lawmakers that the central bank has taken help from the World Bank and International Monetary Fund to supervise and monitor BFIs.
According to Khatiwada, a majority of the problems being witnessed in the financial system can be addressed with the endorsement of the new Banks and Financial Institution Act, Microfinance Regulatory Authority Act and Microfinance Development Fund Act. Banking and Financial Act and Microfinance Development Fund Act have been sent to the Cabinet
Source: Kantipur
Nepal Rastra Bank (NRB) Governor Yubaraj Khatiwada said on Tuesday that he received ‘political threats’ while trying to maintain fiscal discipline and sought help from the parliamentary Public Account Committee (PAC).
Khatiwada made this startling revelation when he was criticised by the lawmakers at a PAC meeting for the central bank’s poor performance in maintaining fiscal discipline. “Even I received threats,” said Khatiwada. “I need your (lawmakers’) support. Governor alone cannot do much.”
Lawmaker Rabindra Adhikari and Rajendra Khetan said the central bank failed to ensure security of common people’s deposits and invited economic crisis by issuing a large number of bank licence, making supervision tough.
While Lawmaker Dhanraj Gurung said the huge investment in unproductive sectors like real estate was due to NRB’s policy, Lawmaker Prakash Chandra Lohani said NRB’s management did not give much attention to Madyamanchal Gramin Bikas Bank even when the bank is on the verge of collapse. Rastriya Banijya Bank (RBB) holds 75 percent stake in the bank.
Khatiwada, however, made clear that financial criminals will not get amnesty like in the past. “We’re carrying out our supervision,” said Khatiwada. “Nobody will get amnesty.”
Khatiwada said NRB has stopped issuing licences to A, B and C class banks and financial institutions (BFIs) and licences for D class FIs are being issued for areas where there are no BFI branches. He informed lawmakers that the central bank has taken help from the World Bank and International Monetary Fund to supervise and monitor BFIs.
According to Khatiwada, a majority of the problems being witnessed in the financial system can be addressed with the endorsement of the new Banks and Financial Institution Act, Microfinance Regulatory Authority Act and Microfinance Development Fund Act. Banking and Financial Act and Microfinance Development Fund Act have been sent to the Cabinet
Source: Kantipur
