53RD NRB ANNIVERSARY : Role of central bank increasing

53RD NRB ANNIVERSARY : Role of central bank increasing
ArthaExpress, 26-Apr-08

Nepal Rastra Bank (NRB) today celebrated its 53nd anniversary. On the occasion, employees of the central bank voiced serious concerns over the long-absence of the regulatory authority’s head. “How can the regulatory authority function without its head for so long,” the speakers questioned, adding that the morale of staff is down.

“Financial sector reform programme and action against the bank defaulters have also been hit hard due to the delay in governor’s case,” they opined. They even challenged the government to action against the wilful defaulters.

In the last fiscal year only, three new commercial banks came into operations making it a total of 23 commercial banks. Similarly, 21 new development banks came into existence making it to a total of 58 development banks and nine finance companies came into operations making it to a total of 79 finance companies.

“Now the supervisory and regulatory role of the central bank has increased,” said acting governor Krishna Bahadur Manandhar. “With the increasing financial institutions, NRB’s supervisory capacity also has to be increased.”

The country has entered into a new era and for a strong economic growth, role of the central bank cannot be ruled out. “Economic inclusion is not possible without higher economic growth,” he added.

“However, political stability and lasting peace are prerequisite for higher economic growth,” he said, adding that rising price and plummeting exports are major concerns for the economy at present.

“Ever increasing global fuel price has also hurt our budget,” he said, adding that economic stability has become a strong challenge in such a situation.

Himalaya Shumshere JBR, the founding governor of the central bank, on the occasion, said that Nepalis have done nothing for economic revolution and social transformation in last 50 years.

“After political revolution one chapter of histroy ended and its high time now to work for economic revolution,” he added.