CBFIN criticizes bad rumors against financial health of a number of the BFIs

KATHMANDU, Feb 19: The Confederation of Banks and Financial Institutions Nepal (CBFIN) expressed its concern over the rumors recently being raised against the financial health of a number of banks and financial institutions by vested interest individuals and groups.

Issuing a press statement on Sunday, the CBFIN said the BFIs have abided by the policy and directives enforced by regulatory bodies, while they are under minute surveillance of the authorities concerned.  A number of legal frameworks have been implemented for the strengthening and transparency of the BFIs.

The CBFIN has pointed out the Bank and Financial Institution Act 2017, regular supervision and inspection by Nepal Rastra Bank (NRB) in accordance to the international standards and regular monitoring of the measures like capital adequacy ratio, liquidity ratio, CD ratio and cash reserve ratio by the central bank as the fundamentals of the policy tools for streamlining the BFIs. In addition, the NRB has also maintained the ‘Deposit and Credit Guarantee Funds’ to safeguard bank deposits worth up to Rs 500,000.

The umbrella organization of the BFIs said the BIFs are completely free of risks related to the welfare of their customers. As of mid-January, the BIFs collected deposits worth 113.93 percent of the country’s GDP, while lending reached 94.47 percent of the GDP. The BFIs have been providing financial services through 6,441 branch networks, reads the press release issued by the CBFIN.