Finance Minister Engages CEOs of 20 Banks to Set Direction for Economic Reforms

19th Shrawan, Kathmandu – Finance Minister Dr. Swarnim Wagle held an extensive discussion with the chief executive officers of 20 commercial banks focusing on building entrepreneurs’ trust, expanding investment, and increasing production. The minister emphasized that such dialogue would usher the country’s economic growth and productivity into a new phase. He suggested taking Tuesday’s meeting as the next step in a joint campaign to revitalize the economy.

Following consultations with private industrialists, Minister Wagle addressed financial sector leaders, stating, “At the core of production, investment, savings, financial confidence, and economic activity lies the banking system. Banks serve savers, entrepreneurs, farmers, investors, and young people aspiring to start new businesses, enabling banks to understand the economy’s true psychology, market confidence, investors’ mindset, and future expectations.”

Claiming that the government has set a clear direction for Nepal’s economic transformation through the budget, Wagle confirmed that efforts are now focused on its implementation. He said, “Alongside budget implementation, I am seeking experience and suggestions to resolve prevailing economic challenges.” Highlighting the shared goal of reenergizing the economy, he urged active initiatives to boost investment, expand production, create employment, and restore private sector confidence.

Providing an update on ongoing regulatory, legal, and institutional reforms, the Finance Minister questioned the banks on whether the initiatives taken so far are adequate. He presented about half a dozen questions and requested the discussion to focus on these issues. The questions included: What is the current economic psychology? Why are businesses hesitant to expand investments? Despite historically low interest rates, why has loan demand not increased? Why has liquidity in the banking system not translated into production and investment? Does the solution lie in monetary policy, financial policy, or private sector confidence? What structural reforms are necessary to increase credit flow to productive sectors? What new approaches are needed in monetary policy, regulation, and supervision? How can coordination among the Ministry of Finance, Nepal Rastra Bank, and the banking sector be made more effective?

Minister Wagle emphasized that the discussion should progress beyond identifying problems to implementing solutions with defined timelines and responsibilities. He stated, “Where legal reform is needed, we will amend the laws. If procedural issues exist, we will change the processes. Institutional coordination will be ensured wherever necessary. The government will not back down if decisive actions are required. We want the economy to be driven not by reaction but by confidence and optimism. Therefore, let us advance today’s meeting as a workshop making the financial system a partner in economic transformation.” According to Minister Wagle, the relationship between government and the banking sector is not only regulatory but also a shared national responsibility and duty. Economic growth, investment expansion, job creation, and financial stability are common goals of both the government and banks. The minister expressed commitment to convert the bankers’ suggestions from Tuesday into an actionable roadmap.