NRB Spokesperson: Asset-Backed Loans Discourage Project Financing

Kathmandu. Nepal Rastra Bank's Executive Director and Spokesperson, Guruprasad Poudel, has stated that the asset-backed loan system in Nepal discourages project loans. He said this while speaking at a program on existing challenges in the banking sector and the economy, organized by Artha ko Artha in Kathmandu.

He mentioned that approximately 67 percent of Nepal's loan disbursement is asset-backed. He stated that this discourages banks and financial institutions from disbursing loans based on project feasibility and risk assessment.