KATHMANDU, June 14: Governor of the Nepal Rastra Bank Chiranjivi Nepal on Friday appealed all the microfinance institutions (MFIS) to opt for merger.
Speaking at an interaction in the capital, the governor of the central bank said that the merger between the MFIs is essential for their sustainability as the market is already overcrowded with MFIs. "The MFIs were established with the objective of enhancing economic development in rural areas by alleviating poverty," he said.
Governor Nepal said that NRB has a plan to establish banks and microfinance institutions at all local levels by the mid-July this year. "Microfinance institutions and banks have been established in 728 out of 753 local bodies," he said.
On the occasion, Ramchandra Joshi, the president of Nepal Microfinance Banker's Association said that his organization fully supports the NRB's appeal to opt for merger citing the exponential growth of MFIs. "The ongoing merger campaign has given huge relief to the already troubled MFIs," he said. However, Joshi expressed unhappiness over the NRB's decision not to release loans to microfinance institutions.