Finance Association submits suggestions to NRB for Monetary Policy 2076/77
As we are nearing the date for Monetary Policy announcement for FY 2076/77, all the stakeholders are submitting their suggestions to Nepal Rastra Bank (NRB) in hopes of being heard.
The Finance Association, association of finance companies of Nepal, have also submitted their suggestions to NRB. The suggestions are:
The Big merger should be coupled with big discount. The past attempts to consolidate financial market has lowered the number of development bank and finance companies, but same can’t be said for commercial banks. Therefore, their mergers should be incentivized by discounts such as CCD relaxation for year post merger for the merged entity.
The promoter deposit limit should be upped by 5%.
Rather than limiting the institutional deposit, NRB can impose control by allowing to lend only 70% of total institutional deposits.
Cooling period should be implemented for all BFIs employees. If an employee wants to leave a BFI, s/he should not be appointed by any other licensed BFI for at least 2 months from the date of approval of resignation. The association has also specified that this cooling period be applicable for same level BFIs.
If an employee intends to leave a BFI then s/he shouldn’t be allowed to join another BFI until s/he pays the amount spent for his/her personal growth and 3 months’ compensation.
Similarly, the monetary policy of last year had allowed commercial banks to provide brokerage services, although it hasn’t been implemented yet. This year, the Development Bankers’ Association (DBA) has suggested to provide that opportunity to development banks too and same has been suggested by Finance companies as they also want to provide brokerage services to its customers.