Private Sector Shows Concern Over Bankers' Arrest   

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Private Sector Shows Concern Over Bankers' Arrest   

March 3: Various organizations representing the private sector have drawn their attention over one after another arrest of bankers in connection with the issue of loan misuse.    

Noting that it was serious to arrest employees of the banks and financial institutions in regard to the loan given on the basis of collateral assessment, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) have expressed their concerns over the action.    

The Central Investigation Bureau of the Nepal Police apprehended 10 bankers, including Acting Chief Executive Officer of Prabhu Bank Manoj Neupane and former CEO of Century Commercial Bank Tulasi Gautam, last Tuesday on charges of disbursing loans exceeding the assessed value of the collateral.

The private sector said the recent incident has seriously affected the professionalism of the banking sector as a whole.

"People who are not directly involved in any of the incidents of banks and financial institutions but working in accordance with the existing legal system, policies and directives of the regulatory bodies have been undermined despite their good intentions merely for signing documents in their capacity," the statement said.    

According to the private sector, banks and financial institutions are engaged in deposit collection and loan investment adhering to the existing acts and directives issued by the central bank.    

In the case of commercial loans, different types of loans are disbursed towards fixed capital and current capital depending on the nature of business, according to the statement of the umbrella organizations of the private sector. -- RSS

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