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Mostly I blame not NRB policies per say, but how people, knowingly or unknowingly, (mis) interpreted NRB directives. NRB directives was that the BFI's need to increase the capital, but if they can't then the BFI's should submit a plan to rise the capital. Most newspaper seem to have gaven the news in installation. One week they said BFI's need to increase capital, and next week they bring out the part where NRB requested a plan if they can not. Even though it was one single directive, it looked like NRB backed down after a week, thus making it look like now they don't need to raise their capital.

Another reason is, several rumors regarding banks merging and what not. It spread like wildfire even though there was no basis for it. Another part of this problem is that the concerned BFI's kept quite while these rumors were flying about.

Another reason is people needing money for Dashin and the fact that loans needs to be paid right after the Dashin. It is not secret that NEPSE goes down every time loan repayment cycle come by. Traders book their profit and pay out their loans.



I don't know. Maybe NRB directives are bad for traders, but I think it usually makes no difference to those who are investing their money for the future.

Just my two cents.

THANKS to NRB politics

What do you say about the recent fall in NEPSE?