April 12: The Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, said that the condition of Nepal's banks and financial institutions is safe and sound at present.
In a press meet organized by the NRB to release the current macroeconomic and financial situation of Nepal based on eight months' data of the current fiscal year on Tuesday, Governor Adhikari said that the positive changes seen in the economic indicators at present have signaled the safe and sound status of banks and financial institutions.
On the occasion, the Governor said that the issue of liquidity crunch will not continue in the banks and financial institutions for a long time, due to improvement in economic indicators owing to central bank's prudential regulations.
"Minor shocks cannot and will not have any impact in the banking sector and overall economy as financial statistics are robust”, according to Governor Adhikari.
Contrary to Prime Minister Pushpa Kamal Dahal and Finance Minister Dr Prakash Sharan Mahat’s assurances of lowering the interest rates, Governor Adhikari made it clear that markets will determine the banks’ interest rates.
“Demand and supply, and state of liquidity will determine bank interest rates. Nepal Rastra Bank will not interfere with interest rates as markets will determine the rates,”