Experts have emphasized that since the lack of market demand is the main problem at present, the monetary policy of the next fiscal year should improve the economic activities of the real sector.

They are of the view that the National Bank should introduce a monetary policy in order to make the economic activity sustainable and help in credit expansion when the money that can be loaned to banks and financial institutions is increasing and the interest rate is very low. They also say that the next monetary policy should be formulated to help achieve the economic growth targets set in the next budget. 

Governor of Nepal Rastra Bank Vishwanath Poudel said that the monetary policy will be prepared to support the programs directed by the finance policy. He said that there will be a program to promote priority sectors such as agriculture, energy and industry in the monetary policy. Admitting that there is more problem of non-performing loans in priority areas, he stated that it will be properly addressed through monetary policy. 

One and a half hundred years ago, the work of banks was to see if loans were paid through the balance sheet of the organization. But now it has been improved, credit was also extended so that more credit goes to the agricultural and industrial sectors. But that's where the problem was seen," he said at the "Pre-monetary" discussion program organized by the Nepal Economic Journalists Society (SEJAN) on Sunday, "but we could not provide knowledge including skills and financial education along with loans. Now we will bring a monetary policy to cover all sectors as we have to promote small businessmen as well.'

Nepal Bankers Association President Santosh Koirala said that since real estate mortgages are not even sold at auction, the banks have demanded an asset management company. He is of the opinion that having such a company in Nepal will solve the problem as it is practiced internationally as well. He said that while it is being said that the credit limit should be set in priority areas, it is also necessary to reconsider the increase in the NPL of that area. 

Upendra Prasad Paudyal, Chairman of Confederation of Banks and Financial Institutions Nepal (CIBFIN), said that in the past, banks have been aggressive in reaching the loan percentage directed by the central bank. "Aggressive loans are gone but bad loans are increasing without being collected, analysis is necessary," he said. He said that while business management of small and medium entrepreneurs is the main challenge, measuring their capacity has become another challenge. Therefore, attention should be paid to how to increase the borrower's ability to repay the loan. Let's work separately to see the impact of directed credit policies,' he said. 

Cibifin senior vice president Rajesh Upadhyay complained that the loan loss provisions for banks were tight. He says that even though there is a law in India to provide for loan loss only to those who cannot afford the mortgage, there is a very strict policy in Nepal. He complained that this is the reason why there is no situation to sell the land instead of paying off the loan by selling it. 

Economist Menuka Karki said that monetary policy should be made after assessing the contribution of private sector loans to the country's productivity and employment. He argues that a bank cannot be called bad if bad loans increase. He says that the monetary policy has not been focused on its objectives in recent years.