Upendra Paudyal, Chairman of the Confederation of Banks and Financial Institutions Nepal (CIBFIN), has said that the banking sector is going through a challenging situation in its history. In the fifth general meeting of the confederation, Paudel said that although they are proud that there has been some improvement in the external indicators of the economy, the internal economy is still weak.

"Due to disappointment among the common investors and businessmen, economic and banking activities have slowed down even when sufficient liquidity is available at the minimum interest rate, the economic and banking activities have slowed down," he said. There is a feeling of a gradual exit.''Increase in

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

'It is necessary for the stakeholders of the economy to think seriously about the issue that the economy of the country will not lose its way due to the recent environment where the banking sector is going through one problem after another,' he added, 'to make the banking sector strong and capable, Nepal The capital increase policy adopted by the National Bank has resulted in extensive capital increase in banks and financial institutions and investors have already increased the bank's capital. Not only the banking sector, but the entire private sector has added more confusion.' 

This arrangement, which was introduced with the aim of distinguishing between bankers and businessmen, is a clear sign of further stagnation in the economy, which is suffering from a deep recession. The investment made yesterday based on the policy made by the state today has created a situation where the investment has to be withdrawn. But the way out is not clear, Chairman Paudyal said.

Not only that, investors with substantial ownership are prohibited from taking loans from the banking sector itself. With such provisions, the entire enterprise-business sector will not only be destroyed, but it seems that it will give more strength to investors and investments. It is necessary to have a serious discussion between the Government of Nepal, the subordinate regulatory bodies and the stakeholders taking such issues to heart. 

Cibifin has been advising 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, conducting policy dialogues, conducting studies and researches, and submitting the conclusions and suggestions obtained from the dialogues and researches to the Government of Nepal, Ministry of Finance, Nepal Rashtra Bank and other bodies. He explained.