Nepal Rastra Bank (NRB) Governor Dr. Chiranjeevi Nepal has said that the central bank will unveil a monetary policy that will force merger if banks and financial institutions refuse.

Speaking at a program organized by the Institute for Strategic and Socio-Economic Research (ISSR) and Pavilion Media Group at the Durbarmarg-based Pavilion Hall on Tuesday, Governor Nepal said that merger was the need of the hour.

Informing that 18 banks have expressed their readiness for a merger, he said that the central bank will facilitate an environment for a merger.

“NRB is bringing the policy encouraging merger following a detailed study. Security of depositors is our prime responsibility,” he said, “The central bank will take necessary action on those refusing merger and that could be scrapping license also.”

On the other hand, Chairman of Prabhu Bank Devi Bhattachan said that a forceful merger would be inappropriate.

He said that the monetary policy should not direct merger as all the banks have received a license and have met the capital requirement of Rs.8 billion.

Also speaking, President of Nepal Bankers’ Association Gyanendra Dhungana said that spread rate can’t be lowered than four percent.

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