Banking News – Executive Directors of Nepal Rastra Bank (NRB) have told Finance Minister Dr. Swarnim Wagle that market confidence has been gradually improving following the formation of the new government, expressing optimism that the economy is beginning to show signs of recovery.

During a meeting with the Finance Minister, the executive directors said the economy, which was severely affected by the COVID-19 pandemic, has yet to fully regain momentum. They noted that supporting citizens and private-sector businesses still struggling from the economic downturn remains a major challenge.

The officials also pointed to the sharp increase in the number of individuals placed on the credit blacklist, saying the resulting pessimism has negatively affected the market and that appropriate measures are needed to address the issue.

Addressing the meeting, Finance Minister Dr. Wagle said the newly implemented Fiscal Year 2083/84 Budget should serve as the foundation for Nepal’s economic transformation. He stressed the need to revitalize economic activity and provide greater support to citizens and private-sector businesses that continue to face financial difficulties due to past policy challenges.

The Finance Minister also urged NRB officials to recommend practical measures that could provide a second chance to thousands of borrowers who have defaulted on loans and been blacklisted, while maintaining financial discipline.

Meanwhile, the NRB executive directors emphasized that protecting depositors’ savings and ensuring the stability of financial institutions must remain a top priority. At the same time, they said immediate steps are needed to help citizens, entrepreneurs, and businesses recover from the long-term impact of being placed on the credit blacklist.

“You are capable economists serving in key departments of Nepal Rastra Bank. Your knowledge of the country’s overall economic and financial condition should be utilized at this crucial stage of nation-building,” Dr. Wagle said during the discussion. “Please advise me on how we can support citizens and private-sector businesses facing financial distress.”

The Finance Minister also expressed confidence that clean regulation and investment-friendly policy facilitation by Nepal Rastra Bank, as the country’s monetary authority, would play a vital role in achieving sustainable economic growth and prosperity.