Kathmandu. The Confederation of Banks and Financial Institutions Nepal (CIBFIN) has welcomed the monetary policy brought by the Rastra Bank.

The monetary policy issued by the Rastra Bank for the fiscal year 2082÷83 BS is welcome by objectively studying, evaluating and analyzing the state of the country’s economic and financial sectors, the mood and expectations of the private sector and the global environment.

According to CIBFIN, the balanced, timely and liberal policies adopted to promote monitoring and supervision rather than policy restrictions have boosted the declining morale and confidence in the banking sector in the monetary policy, which has been eagerly awaited at a time when the country’s economy has been dormant for a long time and economic and banking activities are not gaining momentum.

The monetary policy has laid out a clear roadmap for building a sustainable, resilient and genuine economy by keeping economic and banking activities alive.

At a time when banks and financial institutions are facing pressure on capital funds, prioritising increasing credit investment capacity, facilitating credit management and maintaining financial stability by strengthening the capital fund, and reducing bank rates and policy rates are positive signs that the target of expansion of credit taken by the monetary policy will be easily achieved by facilitating credit expansion, sibifin argued.

In the context of increasing non-banking assets including bad loans, drafting the necessary acts and rules immediately for the establishment of asset management companies, increasing the limit of residential home loans and share mortgage margin loans to make the market dynamic, revising the guidelines on current capital loans as per the need based on the loan payment-income cycle, classification of existing loans and reviewing the loan loss arrangement as needed are positive. ।

Sibifin believes that reviewing credit facilitation in agriculture and micro, domestic, small and medium businesses, full implementation of anti-money laundering strategies and action plan, and practical implementation of awareness and service-friendly programs like ‘Nepal Rastra Bank with borrowers’ will lay the foundation for building a strong, sustainable and genuine economy with sustainable development of the economic and banking sector.