Financial System Remains Strong Despite Some Banking Sector Issues: Finance Minister Khanal

Finance Minister Rameshwar Khanal has clarified that although some problems are currently visible in the banking and financial sector, the overall financial system of the country is not weak.

Speaking at a program organized on the occasion of the 61st anniversary of Rastriya Banijya Bank, Minister Khanal stated that it is natural for issues to emerge in the banking sector from time to time due to various reasons. He emphasized that the presence of such challenges does not mean the financial sector is in a fragile condition.

According to the Finance Minister, the assessment of asset quality and loan quality of some banks is almost in its final stage. He expressed confidence that this review process will further strengthen transparency and stability in the banking system.

Commenting on the condition of Rastriya Banijya Bank, Minister Khanal said the bank’s situation is not as poor as rumored. He noted that the level of non-performing loans has slightly decreased in the last fiscal year compared to the previous year and is not at an alarming level.

However, he pointed out that banks have not been able to utilize their available capital effectively and have failed to identify new investment opportunities. He stressed the need for reforms, better capital mobilization, and the exploration of new investment avenues to further improve the banking sector’s performance.