Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Governor of Nepal Rastra Bank, Maha Prasad Adhikari, has highlighted that Nepal’s economic indicators remain strong despite recent challenges. Speaking at the 58th anniversary celebration of the Agricultural Development Bank in Kathmandu on Monday, he stated that the central bank’s position in external sectors is robust, even as the country faces impacts from floods and landslides.
Governor Adhikari noted that the recent natural disasters have caused a rise in inflation, particularly in food and beverages. However, he emphasized that the overall inflation rate remains within the targets set by the central bank. He also expressed confidence in the stability of the banking system, pointing out that liquidity is sufficient and banks are well-capitalized.
While acknowledging some stress in profitability and recovery within the banking sector, Governor Adhikari attributed this to activities encouraging borrowers not to repay loans. He stated that such disruptions have contributed to a slight slowdown in the economy but assured that the system is resilient.
He warned that anarchic activities within the banking system could have long-term consequences for the economy but expressed optimism that these issues would not persist indefinitely. Despite the challenges, he commended the efforts of banking professionals working diligently at the grassroots level to sustain economic stability.
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