Professional banking system urged

Credit Consumer Association Nepal (CCAN) Friday alleged Nepal Rastra Bank, the apex body for monitoring and regulating banks and financial institutions for reform financial status, of trying to shun away from its duties and responsibility.

Speaking at the press meet in the capital, they censured the bank stating that the trend of liquidating financial institutions was due central bank’s failure in monitoring of these institutions.

CCAN said that the recent controversy over the liquidation of Nepal Development Bank was a result of NRB’s weak control and monitoring system.

Central President of CCAN, Jaya Raj Sharma, said that many banks and financial institutions were opened in the country by the permission of NRB but the NRB had failed to monitor and regulate them effectively.

He said that chances of liquidation of the banks and financial institutions had gone up due to the negligence of the management and board of directors of the various banks and financial institutions.

He appealed the depositors and shareholders to be more aware of the non-responsible activities of the banks and financial institutions.

The board of directors and management committees has been operating banks and financial institutions in a non-responsible way which would lead banks and other financial institutions towards liquidation, he warned.

He asked all banks and financial institutions to start professional banking system to provide reliable and sound banking services to the customers.

Most of the banking institutions were recruiting their kith and kin as staffers paying high perks, which would lead the banks towards bankruptcy. He asked to end such tradition.

He said that the NRB should bring the defaulters who were involved in misusing the public deposits and investments under legal framework with the support from all stakeholders and public.
Source: gorkhapatra.org