30th June 2025, Kathmandu
The Nepal Bankers’ Association (NBA) Sudurpaschim Province Committee successfully conducted an Interaction Program on “Current Issues and Monetary Policy” in Dhangadhi. The event aimed to collect feedback and share insights ahead of the formulation of the upcoming Monetary Policy for Fiscal Year 2082/83.
NBA Sudurpaschim Monetary Policy Feedback
Key Objectives Of The Program
The interactive session served as a platform for industry professionals and banking stakeholders to deliberate on prevailing economic and regulatory challenges, particularly in the Sudurpaschim region. The key objectives were to:
Discuss pressing issues in the banking sector
Collect feedback on the upcoming Monetary Policy
Analyze recent fiscal and regulatory provisions
Explore regional economic concerns and recommend policy-level interventions
Remarks By The NBA Sudurpaschim Coordinator
Mr. Pukar Subedi, Coordinator of the NBA Sudurpaschim Province Committee, welcomed the participants and emphasized critical concerns faced by the banking sector.
He pointed out the sluggish credit demand, rising non-performing loans (NPLs), and increasing challenges in loan recovery. He highlighted the need for:
Reforming the working capital loan guidelines
Reassessing sectoral risk weight allocations
Expanding financial literacy programs to improve borrower behavior and financial inclusion
Discussions On Budget And Banking Innovations
Participants reflected on key elements of the recently announced Fiscal Budget 2082/83, including the introduction of an Asset Management Company and Neo Bank models.
Stakeholders discussed the potential impact of these innovations and stressed the importance of laying a strong legal and operational foundation for successful implementation.
Sectoral Recommendations
The discussion saw strong recommendations for the government and regulatory bodies to introduce targeted interest subsidies for specific sectors, such as:
Agriculture
Hospitality
Such interventions, according to participants, would not only help in improving loan recovery but also stimulate local economic activities.
Address By Chief Guest – NRB Director
Mr. Keshab Bahadur K.C., Director of the Nepal Rastra Bank, Dhangadhi Office, served as the chief guest of the program.
He acknowledged the suggestions from stakeholders and shared perspectives on how similar reforms have been implemented in international contexts.
Mr. K.C. also underscored that before the formal introduction of Asset Management Companies and Neo Banks, legal reforms and a clear operational framework would be necessary to ensure accountability, transparency, and efficiency in the system.
Active Participation From The Banking Sector
The interaction program witnessed enthusiastic participation from representatives of member banks and officials from the Nepal Rastra Bank. Attendees appreciated the opportunity to voice their concerns and hoped that their recommendations would be considered in the formulation of the Monetary Policy 2082/83.
Conclusion
The NBA Sudurpaschim Province Committee reaffirmed its commitment to working collaboratively with regulatory bodies and stakeholders to strengthen the financial ecosystem in the region. The event concluded with a consensus that proactive dialogue between regulators and practitioners is key to shaping an inclusive and growth-oriented banking environment.
For more:- NBA Sudurpaschim Monetary Policy Feedback