CBFIN Urges Safe and Smooth Banking Operations Amid Gen Z Protest Damage in Nepal

15th September 2025, Kathmandu

The Confederation of Bank and Financial Institutions, Nepal (CBFIN) has released a powerful statement calling for the creation of a secure and stable environment for the banking sector following the recent Gen Z protests.

CBFIN Urges Safe Banking

These demonstrations, while largely driven by a genuine desire for reform, unfortunately led to unprecedented damage to private sector establishments across the country. CBFIN’s message underscores the critical role that a stable financial ecosystem plays in supporting Nepal’s economy, which is still recovering from long-term shocks such as the 2015 earthquake and the COVID-19 pandemic. The confederation’s appeal is not just a plea for protection but a strategic call to action for all stakeholders to recognize the importance of the private sector in Nepal’s sustainable economic development.

The Private Sector as Nepal’s Economic Backbone

CBFIN’s statement correctly positions the private sector as the backbone of the country’s economy. The confederation highlights that the private sector is a key driver of economic growth, employment, and investment. A significant portion of Nepal’s Gross Domestic Product (GDP) is contributed by private enterprises, and a vast majority of the workforce is employed in this sector. When banks and financial institutions, which are the lifeblood of the private sector, are attacked, it creates a ripple effect that destabilizes the entire economy. The recent unrest, which saw vandalism, arson, and property damage targeting commercial banks and other financial institutions, has a far more significant impact than just the destruction of a single building. It erodes investor confidence, disrupts the flow of credit, and directly harms the livelihoods of countless individuals and businesses.

The confederation emphasized that this is not merely a request for special treatment but an appeal for a foundational necessity. Without a secure and predictable environment, banks cannot operate effectively to provide essential services such as cash deposits and withdrawals, loan disbursements, and investment facilitation. The damage to banking infrastructure, as seen with Himalayan Bank’s Batisputali branch and others, can interrupt daily financial transactions and impede the economic recovery that Nepal has been striving for.

A Call for Vigilance and Collaboration

In its press release, CBFIN appealed to all stakeholders, from law enforcement and policymakers to community leaders and the general public, to remain vigilant. The confederation specifically urged them to take a proactive stance against any elements that seek to cause harm to financial institutions, whether with malicious intent or through opportunistic actions during periods of unrest. This call for vigilance is a recognition that the security of the financial system is a shared responsibility. The stability of banks is not just a corporate concern but a national one.

CBFIN’s appeal highlights the need for a collaborative approach. The confederation called on government authorities to implement measures that ensure the security of financial institutions. This could include a review of security protocols, enhanced protection for key financial hubs, and the development of specific policies to safeguard banking operations during periods of civil unrest. The statement also subtly pushes for a culture of accountability and responsibility among all citizens, emphasizing that the actions of a few can have far-reaching negative consequences for the entire nation.

Fostering a Stable Business Environment

The confederation also underscored the need for a supportive policy environment that encourages domestic investment, fosters entrepreneurship, and protects business owners and professionals. This includes safeguarding banking operations during periods of unrest and ensuring that financial services remain accessible and uninterrupted for individuals and businesses. This is particularly important for a country like Nepal, where the private sector has been a key driver of economic growth since the adoption of economic liberalization policies in the 1990s. The continued disruption to business operations and the erosion of public trust could hinder the recovery of sectors that have already been severely impacted by past crises.

CBFIN’s statement is a reminder that stability and security are not just political concerns but fundamental prerequisites for long-term economic prosperity. The confederation’s proactive stance reflects its commitment to ensuring a resilient financial ecosystem that can support the nation’s journey toward sustainable development. By urging all parties to collaborate in safeguarding the country’s economic backbone, CBFIN is reinforcing the idea that peace, stability, and cooperation are essential for building a thriving economy and a prosperous future for all of Nepal’s citizens. The statement serves as a wake-up call, emphasizing that while the motives of a movement may be justified, the means of expression must not come at the cost of the nation’s economic and financial stability.

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