New NRB governor vows to fight financial indiscipline

KATHMANDU, March 23: Newly appointed Nepal Rastra Bank (NRB) Governor Chiranjibi Nepal has said he will not make any compromise on upholding financial discipline in the country.

Speaking at a ceremony in NRB on Sunday after assuming the office, Nepal said that he will not spare anyone involved in financial crime.

“Financial crime is on the rise. One of the top priorities will be to reduce it to increase people’s confidence in the banking system and ensure financial discipline,” said Nepal.

Nepal assumed the office as the 16th NRB governor on Sunday following appointment to the central bank’s top post on Thursday.

Nepal, who was the Chief Economic Advisor of Prime Minister Sushil Koirala, was among the three candidates proposed by the recommendations panel led by Minister for Finance Ram Sharan Mahat. NRB deputy governor duo Gopal Prasad Kaphle and Maha Prasad Adhikari were the two names proposed by the committee.

Acting Chief Justice Kalyan Shrestha administered the oath of office and secrecy to Nepal.

“Central bank is the brain of economy of any countries. I will work toward establishing the influence of the central regulatory bank in the economy more effectively in the days to come,” said Nepal.

During his 15-minute address, Nepal repeatedly expressed commitment to work with the private sector to establish financial stability in the country. “The private sector should be taken into confidence so that the environment will be created for them to make more investment in the country,” he said, adding, “I will focus on protection of public depositors and increasing the confidence of investors.”

The new NRB governor also said work to prepare monetary policy in tandem with the government’s fiscal policy. “Apart from encouraging foreign investment, I will also work toward narrowing down resources of informal sector and bring them into the formal sector so that it will be channelized as the investment,” he added.

Speaking at the ceremony, deputy governors Kaphle and Adhikari said that they will support the new governor in implementing the monetary policy. “Most of the financial indicators are positive now. However, there are also challenges ahead which can be resolved through a collective effort,” NRB deputy governor Kaphle said.

Another deputy governor Adhikari also said that the joint efforts of all stakeholders could help in modernizing the central bank.

On the occasion, leaders of various employees unions in NRB urged the new governor to not make any compromise on autonomy of the central regulatory bank. “Governors get lot of political and corporate pressure. Their real test will be seen on their stance to resist such undue pressure and maintain the autonomy of central bank,” said Basanta Pandey, president of NRB Employees’ Association, said.