Confederation of Banks and Financial Institutions Nepal Demands Review of Loan Classification and Provisioning System

Kathmandu. The Confederation of Banks and Financial Institutions Nepal has demanded a review of the existing system of loan classification and provisioning related to banks and financial institutions, stating that it is impractical and excessively strict.Confederation Chairman Rajesh Upadhyay stated that it is necessary to review the system, as businessmen unable to repay loans due to the adverse economic situation and businessmen who do not repay loans intentionally should not be viewed from the same perspective. According to him, the provision of up to 100 percent provisioning according to the periods of three months, six months, and one year under...