Finance Minister Rameshore Khanal on Saturday, January 24, said weak research practices in banks and financial institutions (BFIs) have hindered the identification of productive investment areas.
Speaking at a programme in Kathmandu marking the 61st anniversary of Rastriya Banijya Bank, he said the lack of serious research has contributed to excess liquidity, rising unemployment, and the expansion of a consumption-driven economy.
Khanal expressed concern that a large share of remittance inflows is not being channelled into productive sectors. He stressed that BFIs develop a strong research culture focused on identifying new investment opportunities, expanding the economy, creating jobs, and boosting production.
“Our BFIs invest mainly on the basis of proposals brought by businesspeople, rather than conducting their own studies to determine where investment would generate higher returns, increase domestic employment, and raise production,” he said. He added that the fully state-owned Rastriya Banijya Bank should lead such research efforts.
Khanal noted that much of the remittance income is spent on consumption, limiting its contribution to long-term economic transformation. He said greater investment in productive sectors would help use liquidity more effectively, increase domestic production, and reduce imports. He urged BFIs to prioritise production-oriented lending.
While acknowledging some challenges in the banking and financial sector, he said the overall financial system remains sound.
In a separate context, Khanal said the government’s primary responsibility at present is to ensure the successful conduct of the upcoming elections. He called on all sections of society to cooperate.
(With inputs from RSS)
you need to login before leave a comment
Write a Comment
Comments
No comments yet.