Need To Dispel Anti-banking Sentiments

The banking sector is one of the pillars of the economy of Nepal. It is the banking sector that boosts the economy through investments in agriculture, business enterprises, industry, hydropower, infrastructure development and other relevant sectors. The contributions of the banking sector to the overall economy of the country cannot be over-exaggerated. However, in recent years, the way the public views the banking sector has been negative. People think that bankers are frauds. Their views are based on the way the banks increase interest on loans. In the past, there was a practice of charging floating interest on loans. Such a rate was based on market dynamics. In fact, under such a system, interest on deposits and loans could go up or down as per demand and supply.