CIBFIN takes serious note of NIMB CEO arrest

लगानी न्यूज

१ जेष्ठ २०८३, शुक्रबार १३:०७May 15, 2026

. KATHMANDU: The Confederation of Banks and Financial Institutions (CFIn) Nepal (CIFIN) has expressed serious concern over the arrest of the Chief Executive Officer (CEO) of Nepal Investment Mega Bank over the alleged bidding of securities.

In a press release issued by CBFIN, the bank has been conducting loan disbursement, recovery and mortgage auction in accordance with the Bank and Financial Institutions Act, 2073, Secured Transaction Act, 2063 BS and the integrated directives of Nepal Rastra Bank.TAG_OPEN_div_18 According to Cibfin, the arrest of the officials concerned in view of the professional decisions made under the same legal provision has caused panic and shock to the entire banking sector.

The statement states that serious questions have been raised about who will have the first right over the mortgaged property after the dissolution of a lending institution. It has also warned that there may be complications in the recovery of loans worth billions of rupees invested by banks and such incidents will create confusion in the financial system.

In addition, if there is a hindrance in the loan recovery process and the collateral auction is not possible, the projects of national importance and government policies and programs will also be affected.TAG_OPEN_div_14

The CBFIN has said that it is clear that banks and financial institutions should take action as per the law if they are found to have done anything illegal.TAG_OPEN_div_12 However, it is not justified to arrest professionals without adequate investigation, ignoring the actions done in accordance with the law.

The CBFIN said it was concerned that such incidents could lower the morale of banking professionals, damage social prestige and lead to an exodus of skilled workforce.TAG_OPEN_div_10 It also urged the government and bodies concerned to be sensitive as it could have a negative impact on the banking system, depositors’ interest, shareholders’ confidence and the overall economy.