According to NRB, the commercial banks at present have liquidity surplus of Rs 30 billion. “We feel they must now start attracting borrowers apart from ensuring that deposits growth rate is maintained,” said NRB Governor Dr Yubaraj Khatiwada.[break]
Addressing leading industrialists and traders of the eastern region, Governor Khatiwada on Saturday said he has personally appealed the bankers to support the industries and cut the lending rates.
“Commercial banks have adequate liquidity at present to lend. I have personally appealed the bankers to lend in productive sectors at low interest rates,” said Dr Khatiwada.
Entrepreneurs at the program were complaining against high lending rates charged by the banks and financial institutions (BFIs) and asked the Governor to take steps to lower the rates.
Dr Khatiwada also appealed the general public to build the habit of saving their income, citing that it will eventually help them by not just ensuring good returns but also by lowering inflation.
“And banks too must not focus on easy profit making sectors only. They must lower the rates and channel their investments in the productive sector," he stressed. “This is necessary to drive the country to high growth trajectory,” he added.
While informing the business community that the central bank´s foreign currency reserve has improved in recent months, Dr Khatiwada also noted that NRB has adequate holding of Indian currency as well.
He also said that the central bank was keeping an eye on the financial system, monitoring their operations and activities closely.
Referring to actions taken by the central bank against promoters and top managers of various financial institutions, Governor Khatiwada stated that NRB would not let promoters and managers involved in irregularities and flouting corporate governance norms to go scot free.
Dr Khatiwada asked the private sector to invest in long-term ventures and social sector, refraining from investing in short-term projects.
“There are numerous areas like physical infrastructure, hydropower and agro-processing industries where the private sector can invest with long-term business prospect and also help the economy grow at a rapid pace,” he said, acknowledging the role of the private sector in the country´s advancement.
President of Eastern Regional Chamber of Commerce and Industry Kishore Pradhan said the new government´s decision to promote domestic industries has rejuvenated the private sector. “Use of vehicles produced by Hulas Motors by the Prime Minister has motivated the business community,” he stated.
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