Finance Minister Paudel emphasizes on enhancing trust of financial institutions

Kathmandu, Sept 20: The International Conference on Deposit and Credit Guarantee Funds (organizations) representing different 16 countries of Asia kicked off in Kathmandu today.     

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel inaugurated the conference amidst a programme today. Representatives of the government agencies of the countries are participating in the 36th conference of the Asian Credit Supplementation Institution Confederation (ACSIC). Nepal has hosted the conference after 30 years.     

In his inaugural remarks, Finance Minister Paudel stressed the importance of public trust to the financial system, instructing the financial institutions to perform in a way to gain further trust and credibility.     

He said the role of deposit and credit protection fund would be instrumental in protecting the potential losses of small depositors and minimize risks in the financial system if the banks and financial institutions turn problematic for any reason.     

On the occasion, Minister Poudel underlined the need for institutional safeguards to ensure financial access to innovative and technology-based businesses. "The government has made necessary arrangements for facilitation and regulation to create an entrepreneurial environment by developing an ecosystem for innovation", he said. Nepal Startup Fund amounting to Rs 1 billion has been established and brought into operation through the budget, the minister shared.     

Noting that small businesses have been successful due to security services, Finance Minister Poudel said that the culture of saving has been developed and capital circulation has also helped.     

He stressed the need to encourage savings and expand easy access to credit for economic development. Recalling that the Credit Protection Fund was established to ensure loan mobilization and repayment, he claimed that it has made significant achievements.     

He also inaugurated the 51st anniversary of the Deposit and Credit Protection Fund at the same event. The conference will continue till Monday.     

Minister Paudel expressed the belief that the conference would build a strong international institutional network and enhance the capacity of responsible lending institutions.     

He also said that the conference would help institutionalize reforms for credit security.     

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said the conference was expected to help propel the economic development of countries like Nepal. He said the outcome of the conference would also help countries including Nepal in formulating necessary policies.     

Chief Executive Officer of Deposit and Credit Protection Fund Ramesh Ghimire expressed the belief that the conference would be a strong base for loan protection. Representatives of deposit and credit protection agencies from different countries will share their experiences in the conference.     

Representatives from 16 countries including Nepal, India, Malaysia, Indonesia, South Korea and Japan are participating in the conference.(RSS)