Some banks are at risk: Governor

The Governor of Nepal Rastra Bank (NRB), Deependra Bahadur Kshetry, has stated that some of the banks have put deposits, the hard-earned saving of people, at risk and that the central bank could take tough steps against the banks at any time to safeguard the depositors´ interests. Khestry, who was in Biratnagar to inaugurate the head office of Srijana Finance, however, did not disclose the names of the banks in possible trouble. Referring to the action the central bank took against Bank of Kathmandu, Governor Kshetry said that the NRB intervened because of the disputes among its board directors and because the board attempted to operate the bank as a private property. "Our sole aim behind the action was to protect the deposits of the people," said Kshetry, elaborating that the new board formed by the central bank would hold the annual general meeting of the bank and form a new board of directors by the end of this fiscal year. Kshetry further stated that the Commission for Investigation of Abuse of Authority (CIAA) has unearthed yet another incident of financial embezzlement in another reputed bank. "The CIAA has already filed a misappropriations case against its promoters," he stated, refusing to divulge the name of the bank. Inaugurating the new finance company, Kshetry also said that the government has taken a policy of supporting banks and financial institutions that have been established with an aim to invest in agro-based industries. Kshetry praised banks and business associations for positively supporting the government´s Youth Self-Employment Program (YSEP), but he noted that more than the expected number of applications for loans under the program had made managing the program difficult. He went on to say that youth employment was an issue directly linked to the country´s peace and security, and that supporting the YSEP could help create a more investment-friendly environment. He also said that the Rs 200,000 to be pledged under the program was not a grant--that individuals taking the money would need to pay back the loan to the fund.

Source:  Myrepublica.com