Confederation of Banks and Financial Institutions Nepal Demands Review of Loan Classification and Provisioning System
Summary
The Confederation of Banks and Financial Institutions Nepal has called for a review of loan classification and provisioning rules, saying the current system is too strict for borrowers facing genuine economic hardship. Chairman Rajesh Upadhyay said willful defaulters and honest business owners struggling because of the downturn should not be treated the same way.
Key Points
- The Confederation of Banks and Financial Institutions Nepal says the current loan classification and provisioning system is impractical and excessively strict.
- Chairman Rajesh Upadhyay argued that borrowers unable to repay because of the economic downturn should be treated differently from willful defaulters.
- He said genuine business owners can fall into the blacklist within a year under the current rules.
- The confederation has repeatedly raised the issue with Nepal Rastra Bank and wants the system reviewed without delay.
