March 31: Nepal Bankers’ Association has insisted that bank interest rates are not expensive. Organizing a press conference in Kathmandu on Thursday, the bankers’ association argued that bank interest rates are not as high as touted in the market.
“It is not prudent to say that interest rates have become dearer comparing them to the period of COVID-19. Interest rates have just gone up to the pre-COVID-19 level,” said Nepal Bankers’ Association Chairman Sunil KC.
NBA Chairman KC clarified that protest targeted against banks and financial institutions will not change interest rates. “Demand and supply will determine interest rates, not the protest and agitation,” KC, who is also Chief Executive Officer of NMB Bank added.
KC said that it was unfortunate banks and financial institutions were receiving attacks from all sides. “The attacks appear to be against banks on the surface. But, they are against entire industrial sector, around 40 million account holders and over the whole country,” KC explained.
KC opined that impact of activities targeted against banks would be long-term and the whole country would have to pay the price for such activities.
NBA Chair KC made it clear that protests against banks will have serious effects on foreign investment. He cautioned that country and its economy will have to face consequences of anti-bank activities.
Of late, banks have optimized investment on electric vehicles and productive sector significantly for the sustainable growth of the national economy, accoridng to KC.