Nepal Rastra Bank Deputy Governor Highlights Monetary Policy Challenges
Summary
Nepal Rastra Bank Deputy Governor Kiran Pandit highlights the dual challenge of supporting economic growth while maintaining financial stability amid evolving digital financial challenges and a pressured banking sector.
Key Points
- Nepal Rastra Bank acting governor Kiran Pandit emphasized balancing high economic growth targets with maintaining economic stability through monetary policy.
- The banking sector is under severe pressure with issues like non-performing loans and accumulation of non-banking assets due to weak credit demand.
- Experts called for necessary reforms in monetary policy and regulatory arrangements to address structural banking challenges and stimulate economic recovery.
- Despite sufficient liquidity in banks, low credit demand from the private sector and risks like asset-liability mismatches pose significant challenges for the banking system.
