Asset Management Company to Be Established for Managing Non-Banking Assets and Bad Loans

The government is set to take a concrete step toward addressing the growing issue of non-banking assets and bad loans in banks and financial institutions. In the policy and program speech for the fiscal year 2082/83 delivered in the joint session of the Federal Parliament on Friday, President Ram Chandra Paudel announced the establishment of an Asset Management Company.

“The government will establish an asset management company to manage non-banking assets and bad loans of banks and financial institutions,” President Paudel stated during the announcement.

Although the issue has been mentioned in previous budgets and policies, it had not been effectively implemented. This time, the inclusion of this initiative in the official policy signals a more serious and structured approach. The government believes this move will strengthen the banking system by making it more secure, efficient, and transparent.