No any BFIs are on the brink, NRB chief reiterates

KATHMANDU, FEBRUARY 27 : Governor of Nepal Rastra Bank, Maha Prasad Adhikari, reiterated that no banks and financial institutions (BFIs) are on the verge of collapse during a program organized by the Nepal Bankers’ Association (NBA). This reaffirmation comes amidst market rumors about the potential bankruptcy of some BFIs, aiming to assure depositors of the safety of their funds.

Adhikari emphasized the central bank’s commitment to preventing any major crisis in the country’s banking system through the implementation of appropriate statutory and regulatory measures.

Furthermore, Adhikari addressed allegations that Nepali banks prioritize profit over service, stating that such accusations are unfounded. He provided data to illustrate that while the total portfolio of Nepali banks has significantly increased over the years, their total profits have remained relatively stable. Adhikari attributed this to a significant reduction in service charges, highlighting that the service charge, which was previously set at 3/4 percent, has now been reduced to 0.75 percent.