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The Nepal Rastra Bank (NRB) unveiled the monetary policy for the fiscal year 2067/68 Wednesday, aiming to assist the 5.5 percent economic growth target and bringing down the inflation to 7 percent from the existing 10.5 percent (estimated).

The monetary policy restricts the registration of new banks for the time being and tightens the loan provisions for land plotting business by limiting the credit flow of the banks to 10 percent.

However, the loan provisions for the housing sector will be relaxed, said NRB officials at a press conference.

Similarly, the central bank has restricted the registration of new banks for the time being.

NRB said that it will cease from granting operating license to new banks until any other changes in the Monetary Policy provision.

In order to encourage merger and acquisitions among financial institutions, the  monetary policy has also  introduced an incentives policy for those that take up bad financial institutions.

NRB Governor Dr Yuvaraj Khatiwada (File photo)

NRB Governor Yub Raj Khatiwada informed that a separate standard will be prepared for those financial institutions, aiming for long term investment for infrastructure development.

The policy has barred banks from investing more than 10 percent of their total loans into the real estate.

The monetary policy also aims to encourage the banks to come up with a detailed plan to double their investment in agriculture, energy, small industries and tourism sectors within two years, whose implementation will be monitored by the NRB.

Similarly, the NRB has also pledged to enforce strict regulations on the salaries and benefits of CEOs of banks and other financial institutions. nepalnews.com

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<< Begin < Prev 1 2 Next > End >> << Begin < Prev 1 2 Next > End >> narad   |60.240.128.xxx |2010-07-30 13:33:44 really good policy Amrit Regmi  - Some comment on Monitery Policy   |116.90.224.xxx |2010-07-29 22:48:37 We must say this is a good start for the correction of prevailing financial crises. Import subsution means use of local product agasinst imported product. Better to revail the specific areas where we can use our product against the imported one.NRB can atleast give the direction to the financial insution to extend loans in such areas. For export promotion we should adopt value added concept and beyond certain percent the concept of tax holiday should be better. How to use the call deposit account to minise the cost of capital by the financial insution. The concept of opening branches in the remote centre is praise worthy.But how to transfer the cash may creat practical difficulties.NRB should make some practical arrangement to cover such difficulties. The proposed financial incentive seems very attractive.The incentive given by the central bank should be spend at least 75 % in the same area. The overhead sh... Anonymous   |115.187.16.xxx |2010-07-29 22:25:11 stop talking nonsense, and act to control price-hike in market. Everything has got expensive. Common Nepalese are having hard time to make ends meet. The prime work of the new governor is to control PRICE-HIKE. Control it, you will be applauded by everybody. Anonymous   |113.199.159.xxx |2010-07-29 19:12:19 No matter who becomes the governor nothing much changes in policies. In all sectors all are same. It clearly shows all stake holders are inexperience. On the other hand great politicians are on same track. This is clearly shown that no policies are cjanged in Nepal. this is why Nepal is on the verge of collapse. In order to develop a country all policies should change. regrettably nothing has change from feudal system. Nepalese are so stuborn that no one knows where they stand and what they want. There is no initiative what so ever. raj  - Worthless policy   |85.159.201.xxx |2010-07-29 17:40:40 NRB policy in regards to tightning to land plotting policy not enough,why 10 percent;it is cunnininness policy as NRB is impressed by land broker. Patrakar  - What a briliant idea?   |210.93.99.xxx |2010-07-29 16:03:35 In my opinion, today’s political leaders are just trying to grab the power for the shake of social status, prestige and their personal economic gain. They don’t have time to think about the nation and its people. So I guess, we are going backward and it’s not good for the development of our nation Bali Singh   |71.235.200.xxx |2010-07-29 11:03:11 This estimates of inflation from 10.5 to 7% is unrealistic. Nepal does not produce enough domestically to meet its domestic demand so as long as Nepal keeps relying on imports especially on agricultural goods the price will keep going up i.e inflation will rise. Simple law of supply and demand. You dont need a PhD to figure this out. I can invision a GDP growth of 5.5 simply by relaxing trade tarrifs and stop shutting down the whole country every other day or so. Wake you educated fools with money in your mind. Set a realistic goals and make sure you actually met your target. If you can bring inflation down by just 50 basis points and have a 2% GDP growth I will move back to Nepal and start my own firm! Anonymous   |113.199.207.xxx |2010-07-29 04:41:06 Killing one child for the development of another child. Anonymous   |113.199.207.xxx |2010-07-29 03:56:15 Do away with restrictions of 10% investments in real estate business by banks. This is total government monopoly. Government should not try to restrict investments in a democratic country. L ZINGU  - NOT ENOUGH INFORMATION   |196.21.56.xxx |2010-07-29 03:54:02 THE INFORMATION THAT YOU HAVE SUPPLYED IS NOT ENOUGH

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