Upendra Paudyal, Chairman of Confederation of Banks and Financial Institutions of Nepal (CBIFIN), has said that now the banking sector is going through a challenging situation in its history. Speaking at the 5th general meeting of Cibifin, Poudel said that although we are proud that there has been some improvement in the external indicators of the economy, the internal economy is still weak.

"Due to the disappointment of investors, entrepreneurs/businessmen, economic and banking activities have slowed down even when sufficient liquidity is available at minimum interest rates, the economic and banking activities have slowed down," he said. A gradual exit is being felt.''

Increase in costs, contraction in profits, increase in bad/non-performing loans, non-banking Poudyal said that the problems in the banking system are increasing due to slowness in the sale of property, migration of skilled manpower, etc.

'It is necessary for the stakeholders of the economy to think seriously about the issue of whether the country's economy is going to lose its way due to the recent environment where the banking sector is going through one problem after another,' he added, 'the banking sector is strong and capable. The capital increase policy taken by the Nepal Rastra Bank has resulted in extensive capital increase in banks and financial institutions and when the investors have already increased the capital of the banks, the Bill on Banks and Financial Institutions presented in the Parliament will reduce the banking sector. Not only that, but it has added more confusion in the private sector as a whole.'

This arrangement, which was introduced with the aim of distinguishing between bankers and businessmen, has seen a clear sign of further stagnation in the economy which is suffering from a deep recession. President Paudyal said that the investment made yesterday on the basis of the policy made by the state today has to be withdrawn, but the way out is not clear. Not only that, investors with significant ownership are prohibited from taking loans from the banking sector. With such provisions, the entire enterprise/business sector will not only be destroyed, but it seems that investors and investments will get more strength to flee. It is necessary to have a serious discussion between the government of Nepal, the subordinate regulatory bodies and the stakeholders taking such matters into consideration.

Cibifin has been providing advice to the Government of Nepal and its subordinate regulatory bodies to protect the rights and interests of investors and stakeholders, to contribute to the strengthening and strengthening of the national economy through quality and sustainable banking services, and to identify the problems that have arisen in the banking sector and adopt solutions.

For the upgradation of the economic and banking sector, in coordination and cooperation with Nepal's academic and professional institutions/personalities and international organizations, conduct policy dialogue, study and research and submit the findings and suggestions obtained from the dialogue and research to the Government of Nepal, Ministry of Finance, Nepal Rastra Bank and other bodies. He said that he has been doing it.