Forum

Why you should not let bureaucrat make policy?
- Policy regarding depositing local body budget in BFIs is the latest proof.

-First of all, they took months, probably year to draft that policy.
-And when finally drafted it, its has huge flaw. More than half of the budget is given to 4 banks.

Tell me something, after they lend that money, how are they going to cash the cheque local body send.
In theory, When bank A lends, that money goes to bank B and when bank B lends that money goes to bank A. That way they are able to cash the cheque of their depositor.

If more than half of cash is deposited in 4 banks, will those money return to those bank up to 50%. I dont think so. Amount is very small, that is why, it may not create that big problem. But when govt deposit 100 billion, it will create the above problem.

And if there is problem, who would you blame. Decision to deposit the cash or policy drafted by idiot bureaucrat???

That is why I have been saying, let think tank draft policy which PM or parliament should pass. Bureaucrat should only get involved in documentation.


Think tank means some who can think correctly. Not someone who gets think tank certificate from RAW agent- media.

Risingjee

Liquidity problem will be solved. After sometime some wonderful news are coming.

....Baki Ishwor Ko Leela...

स्थानीय निकायको रकम वाणिज्य बैंकहरुमा निक्षेपको रुपमा राख्ने प्रकृया सुरु

I had non confidence in biddwan yuraj k, but i expected from him to solve liquidity and interest problem by injecting cash into the system. Even in this case, he is too slow and close to useless.

typical bureaucrat!

Like I have been saying, "Think Tank should make policy, not bureaucrats. Bureaucrats neither have ability, nor motivation to draft policy. They are very slow too." PM should choose right think tank, who should make policy, strategy, research, analyze and make policy which should be passed by PM/parliament.

Bureaucrats job description should now be limited to documentation.

have they began to deposit local body cash in bfis?

While, So called expert, NRB, Beurocrats, media, wanna be economist all were saying "we have liquidity crisis cause Banks gave 15/20 extra loan than they are suppose to".

I said, main reason, there is liquidity crisis is "govt not spending revenue".

They did not listen to me, now, since khaire has spoken too "उनले स्रोतबीना बजेटको आकार बढाउने, पैसा खर्च नगरी कोषमा थुपारेर राख्ने र निजी क्षेत्रले परिचालन गर्ने रकम सरकारको कोषमा थुप्रिएर बस्ने जस्ता कारणले वित्तीय क्षेत्रमा उतारचढाव देखिएको बताए।".

Now they may listen.

Another reason is, BFIs restriction in lending capital and reserve as loan while they keep on increasing.

These problems could have easily been solved just signing one document. Deposit govt revenue in the BFIs and let banks give loan from capital and reserve.

Positive news

नेपालमा प्राय जसाे लगानीयाेग्य पुँजीकाे अभाव पुस देखि चैत्रसम्म हुने गरेकाे र सरकारकाे खर्च साे अवधिमा कम हुने गरेकाेले सरकारलाइ रकम अभाव नहुने गरी साे अवधिमा सरकारी खातामा रहेकाे रकमकाे २० प्रतिशत रकम बैक खातामा राखी वैशाख देखि असार सम्ममा फिर्ता लिनु उपयुक्त देखिन्छ । किनभने पुस मसान्तमा कर सङ्कलनबाट त्यसकाे पूर्ति हुन जान्छ । यसरी वैकमा राखेर प्राप्त हुने व्याजबाट सरकारले लिएकाे ऋणकाे व्याज तिर्न पनि सहयाेग पुग्ने देखिन्छ । त्यसै गरी देशकाे अार्थिक वृद्धि र तरलता व्यवस्थापनमा समेत सहयाेग पुग्ने देखिन्छ ।

बजारमा तरलता अभाव भएको बेला आयो खुसीको खबर..

http://aaganpost.com/2018/01/18/%e0%a4%ac%e0%a4%9c%e0%a4%be%e0%a4%b0%e0%a4%ae%e0%a4%be-%e0%a4%a4%e0%a4%b0%e0%a4%b2%e0%a4%a4%e0%a4%be-%e0%a4%85%e0%a4%ad%e0%a4%be%e0%a4%b5-%e0%a4%ad%e0%a4%8f%e0%a4%95%e0%a5%8b-%e0%a4%ac%e0%a5%87/

LET'S SAY, SUPPOSE, SOME BFI CANT CLEAR CHEQUE, THEN IN THIS CASE, TELL THE BFI TO CLEAR THE CHEQUE USING CDRATIO MAINTENANCE MONEY, AND GIVE THEM 2 YEAR TO GET BACK INTO CD RATIO LEVEL, NO MORE GOVT MONEY FOR THAT BFI UNTIL CD RATIO HAS BEEN MAINTAINED.

http://merolagani.com/NewsDetail.aspx?newsID=37701
सरकारले चाहिएको अवस्थामा तत्काल पैसा फिर्ता माग्न सक्ने हुँदा बैंकहरुको समस्या जहाँका त्यही रहन्छ ।

त्यसमा विस्तृत रुपमा हेर्न बाँकी नै छ । त्यो सम्भव भएको कुरा चाँही हो । केही उपकरण बनाएर पठाउन त सकिन्छ तर ठ्याक्कै सर्व सञ्चित कोष नै सिफ्ट गर्न त कानूनी कुराहरु पनि आउँछ ।

- billions of rs is being deposited every hour as well as billions are cashed. But still bfis dont face problem, cause that money is being taken out from one and goes to another. and vice versa.

- since, keeping money in saving account in bfis is going to be new practice, and no one can tell exactly the out come. So start it as a trial and need to form committee so that they would be able to watch and change rules in weekly basis.

I believe it can be done, and increase govt revenue and creates job. But, there is no 100% guarantee, so start with 150 billion.


यो मिल्ने जस्तो मलाई लाग्दैन । ( yestai negative individual le des chalaya ko le , yesto halat cha)


---------------------------

The main reason behind liquidity crisis is Govt is raising more and more tax while not spending it. Depositing such revenue in the BFIs can solve liquidity crisis created by bureaucrats so lesser people will raise voice against bureaucrat for not able to spend development budged, which is being focused due to liquidity crisis.

Here is how, Govt can solve it and its rule of engagement:
1: In first phase/trial phase, auction 150 billion for saving account.

2: Choose at least 15/20 Bfis- Banks and dev banks.

3: Auction 3/5 billion at a time, those who buy it should buy whole. Then when there is no longer bidding for hole amount, then let them bid for lesser amount but offer 3/5 billion. Bid it for 15/20 times. Till bidding reach 15/20 times, tell, single bfi cant bid twice. After 15/20 times is crossed, them bfis can bid as many times as they want till 150 billion is sold. (more bidding after result is studied, bidding should be in quarterly basis)

4: The contact should be for 1 year and interest rate should not be changed.

5: One Bfi should not bid for more than 2 times of their capital for 6 month and 4 times of their capital for 1 year.

5: Those participating Bfis should be in profit for at least 4 year and book value should be more than 110.

5: Form a committee, whose tenure should be for 2 year, whose job should be to keep on studying the impact of putting govt revenue in saving account and make changes in rule in weekly basis. They should be proactive.

6: After depositing 150 billion in saving account, govt should spend money up to 100 billion from saving account only and study its impact. And make changes in rules when needed.

7: If depositing in saving account has more of a positive impact than negative. Then conduct such auction in quarterly basis and put all money in saving account.


I BELIEVE THIS WILL INCREASE ECONOMIC ACTIVITY WHICH WOULD INCREASE JOB OPPORTUNITY AS WELL AS REVENUE. SINCE, MONEY WILL BE MOVING FROM ONE BANK TO ANOTHER, SO THERE WONT BE CD RATIO CRASH IN AGGREGATE WHEN GOVT SPENDS THAT MONEY.

Govt to come to aid of cash-strapped banks


http://kathmandupost.ekantipur.com/news/2018-01-05/govt-to-come-to-aid-of-cash-strapped-banks.html


- saving revenue in saving account is the mid term solution, till, then, big FDI will arrive.

Make exchange rate freely tradeable .

बैंकिङ तरलता समस्या हल गर्न दुई विकल्पमा छलफल, सरकारी पैसा बैंकमा राख्दा ऋण दिन पाइन्छ?
http://www.bizmandu.com/content/-31113.html


- Why do they want to turn simple thing, complicated???

Govt should add one more list in refinancing. Add 100 billion for assembly plant @ 1% interest for 10 year.

The main reason behind liquidity crisis is Govt is raising more and more tax while not spending it. Depositing such revenue in the BFIs can solve liquidity crisis created by bureaucrats so lesser people will raise voice against bureaucrat for not able to spend development budged, which is being focused due to liquidity crisis.

Here is how, Govt can solve it and its rule of engagement:
1: In first phase/trial phase, auction 150 billion for saving account.

2: Choose at least 15/20 Bfis- Banks and dev banks.

3: Auction 3/5 billion at a time, those who buy it should buy whole. Then when there is no longer bidding for hole amount, then let them bid for lesser amount but offer 3/5 billion. Bid it for 15/20 times. Till bidding reach 15/20 times, tell, single bfi cant bid twice. After 15/20 times is crossed, them bfis can bid as many times as they want till 150 billion is sold. (more bidding after result is studied, bidding should be in quarterly basis)

4: The contact should be for 1 year and interest rate should not be changed.

5: One Bfi should not bid for more than 2 times of their capital for 6 month and 4 times of their capital for 1 year.

5: Those participating Bfis should be in profit for at least 4 year and book value should be more than 110.

5: Form a committee, whose tenure should be for 2 year, whose job should be to keep on studying the impact of putting govt revenue in saving account and make changes in rule in weekly basis. They should be proactive.

6: After depositing 150 billion in saving account, govt should spend money up to 100 billion from saving account only and study its impact. And make changes in rules when needed.

7: If depositing in saving account has more of a positive impact than negative. Then conduct such auction in quarterly basis and put all money in saving account.


I BELIEVE THIS WILL INCREASE ECONOMIC ACTIVITY WHICH WOULD INCREASE JOB OPPORTUNITY AS WELL AS REVENUE. SINCE, MONEY WILL BE MOVING FROM ONE BANK TO ANOTHER, SO THERE WONT BE CD RATIO CRASH IN AGGREGATE WHEN GOVT SPENDS THAT MONEY.