Kathmandu. KATHMANDU: The Confederation of Banks and Financial Institutions (CBFN) has said that the central bank has made the Monetary Policy of the current fiscal year a welcome one. Nepal Rastra Bank (NRB) on Tuesday released the second quarter or half-yearly review of the monetary policy for the fiscal year 2082÷83.

“The precautionary, measurable, stability-oriented approach and policy steps adopted by the NRB through the half-yearly review of monetary policy are welcome,” the statement reads. “The move to take targeted structural reform measures in the latest context, while retaining core policy parameters in line with the gradual recovery strategy seen in most emerging economies, signals further strengthening and strengthening financial stability,” Sifin said.

The review states that liberal provisions such as expanding the scope of sectoral credit, encouraging the expansion of micro, domestic and small enterprise loans, cash-based evaluation of working capital arrangements, targeted restructuring facility and increasing the limit on foreign exchange risk, flexibility in the blacklist regime have eased the expansion of credit and investment in the productive, export-oriented and employment-oriented sectors, and to promote economic activities. The organization expects it to be helpful in developing the financial market and gradually modernizing the banking sector.

Additionally, the strategic initiatives that have been adopted to accelerate the rapid expansion of digital payment systems and promote digital infrastructure will contribute to integrate Nepal’s financial system in a match with global modernization.

The CBFIN believes that assimilating the reform initiatives adopted by maintaining a balance between short-term liquidity management and long-term structural reforms will contribute constructively to the modernization of the overall economic and banking sector, sustainable development and strengthening of the economy if we can carry out the task of corporate governance and analytical capacity and risk management and mitigation with patience.

The CBFIN is confident that the central bank will take decisive policy steps based on discussion and consultation with the stakeholders to minimize the challenges seen on the issues of non÷bad loans and non-banking assets of banks and financial institutions, as well as liquidity management.