Nepal, July 6 -- Nepal Rastra Bank governor Dr Bishwanath Paudel has said that increasing bad loans in agriculture and small and medium enterprises have badly affected banks and financial institutions.

He noted that merely introducing monetary policy focusing on large entrepreneurs and businesses will not resolve this issue. At a pre-monetary policy discussion programme organized by the Society of Economic Journalists (SEJON) in the capital today, Governor Paudel mentioned that preparations are being made to introduce monetary policy for the upcoming fiscal year 2082/83 BS, with a focus on agriculture and small and medium enterprises.

"We desire to increase the flow of loans in agriculture and the small and medium enterprise sector, bu...