Central Bank mulls dismantling industrialist-bank nexus to avert anomalies in financial system
Kathmandu, July 14 -- Six years after then governor Yubaraj Khatiwada advised bank directors to either become a banker or a businessperson, Governor Chiranjibi Nepal reiterated the regulator's promise to dismantle the business-bank nexus.
Speaking at the Kantipur Roundtable on Monetary Policy 2019-20 on Friday, the governor said allowing business owners to hold directorial capacity in financial institutions has led to conflict of interest.
"At the time of awarding licenses to financial institutions, we as a regulator have directed the promoters to use public investment to support Nepal's economy and nothing else," said Nepal. "It is our responsibility to keep a stringent check on the banking sector anomalies."
However, it is not the fi...
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