Bankers' Association submits suggestions to Rastra Bank; Demands include rethinking of spread rate calculation and making debenture issuance voluntary

Nepal Bankers' Association (NBA) has sent a lettter to the Nepal Rastra Bank (NRB) providing suggestions concerning improvement of commercial environment of Nepal. The Finance Minister, Dr. Khatiwada, had encouraged the association to provide suggestion to the central bank.

The suggestions are:

-Reconsideration on calculation method of spread rate.

-Not implementing the counter cyclical buffer immediately.

-Making the issuance of debentures by banks voluntary, which is currently mandatory.

-Making tax clearance certificate and union code compulsorily only for big loans by providing a limit.

-Implementation of all rules at once creates panic, therefore implementing these actions in phases.

-Loans provided to priority sectors should be allowed to be bought and sold between banks.

-Decreasing the provisioning of priority sector loans to 2% from 5%.