NRB Governor Assures Depositors their Funds are Secure in Banks

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NRB Governor Assures Depositors their Funds are Secure in Banks

March 4: Dismissing rumors that the some banks and cooperatives are going bankrupt, the Governor of Nepal Rastra Bank Maha Prasad Adhikari made it clear that such a situation does not exist.

He also claimed that the situation of Nepal's banks and financial institutions is the safest and most transparent in South Asia.

"All the banks are safe at present and people's deposits are safe," said the Governor Adhikari at the finance committee meeting of the House of Representatives on Sunday.

According to the governor, the banks of Nepal are safe as the core capital of banks is above 8 percent. Stating that there is a need to increase the capital to increase the loan portfolio, the governor presented the fact that banks have Rs 600 billion of liquidity for investment.

He informed the committee members that the bad loans (NPL) of the banks have reached 3.40 percent, saying that the credit quality of the banks has decreased recently. According to Governor Adhikari, the overall market conditions, the slump in the economy, reduction in repayment and the market rumors that the debtors do not need to pay bank loans have resulted in the increase in bad loans.

According to the Governor Adhikari, there is no need to worry because banks have three times more liquid assets than the deposits saved by the depositors. He said that even if there are some difficulties due to the internal situation of some banks, they will be resolved.

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