Tax benefit to be used as a rescue tool for big merger! Will monetary policy favor NBA’s demand?

Nepal Bankers Association (NBA) asked Nepal Rastra Bank certain tax benefit to complete big merger.

Nepal Bankers Association included the need of tax benefit for the big merger process in its suggestion to NRB’s upcoming monetary policy. Commercial banks had asked for such benefits even in its suggestions to finance minister before budget announcement. However, budget simply addressed big merger but did not give even a clue on such benefits.

The bankers’ association also recommended the introduction of liquidity bond in order to resolve the problem of liquidity. The bankers’ association also asked to reconsider the inclusion of agricultural loans’ inclusion while calculating CCD ratio. Also, the bans have demanded the provision of transferring the funds allocated to agricultural loans to the investment in government bonds if the banks are unable to disburse agricultural loans.