Private sector spooked by bankers’ arrest


KATHMANDU, MARCH 3: The private sector, represented by organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Chamber of Commerce (NCC), has expressed concern over the recent arrests of bankers in connection with loan misuse issues.

They have emphasized the seriousness of apprehending bank employees for loans granted based on collateral assessment. The arrest of 10 bankers, including the Acting CEO of Prabhu Bank, Manoj Neupane, and the former CEO of Century Commercial Bank, Tulasi Gautam, by the Central Investigation Bureau of the Nepal Police has raised alarms within the private sector.

The private sector has highlighted that such incidents have tarnished the professionalism of the banking sector as a whole. They argue that individuals who were merely following existing legal procedures, policies, and directives of regulatory bodies have been targeted, despite their good intentions.

According to the private sector, banks and financial institutions operate within the framework of existing laws and directives issued by the central bank. They emphasize that different types of loans, including those for fixed capital and working capital, are disbursed by banks based on the nature of the business.

Overall, the private sector organizations are calling for a more nuanced approach to addressing issues of loan misuse and are advocating for the protection of individuals who are operating within the legal framework set by regulatory authorities.