Kathmandu – Nepal Rastra Bank Governor Maha Prasad Adhikari has expressed concerns over the stress in banks caused by their inability to recover investments. Addressing the annual general meeting of the Nepal Bankers’ Association in Kathmandu, Adhikari emphasized that despite challenges, the banking system remains stable.

He remarked on the resilience of Nepal’s banking sector, even during global crises such as the COVID-19 pandemic. However, he noted a shift in global trends toward self-reliance despite the advantages of globalization, adding further challenges to the sector.

While acknowledging that banks maintain robust capital, Adhikari highlighted the increasing issue of non-performing loans. He credited strong loan provisions for safeguarding the banking sector, asserting that even when principal and interest payments are not being recovered, these provisions have prevented the creation of a crisis-like scenario.

Adhikari urged stakeholders to take pride in the banking sector despite the hurdles and acknowledged the significant efforts required to address these challenges.