Confederation of Banks Warns of Impact on Banking Sector Due to Investment Mega Bank Auction Case
Summary
CBFIN has warned that the investigation and prosecution of Nepal Investment Mega Bank’s leadership in the collateral auction case could weaken decision-making, governance, and trust across the banking sector. It says commercial disputes and regulatory issues should be technically reviewed by Nepal Rastra Bank before any criminal action is taken.
Key Points
- CBFIN says the case against Nepal Investment Mega Bank’s leadership could hurt the entire banking sector and weaken public trust.
- The confederation argues that commercial banking decisions and collateral-related disputes should first be technically examined by Nepal Rastra Bank.
- It warns that uncertainty over collateral rights and license cancellations could disrupt lending in priority sectors such as hydropower, telecom, and infrastructure.
- CBFIN has urged authorities not to criminalize civil and regulatory disputes in the absence of clear criminal intent.
