It's been 5 year since economy, share market crashed and still have not recovered.
NRB through Monetary policy, immediately/now, do these things to fix economy and share market:
1: Goal to push 200 Arab housing loan under 2 year. Low, fixed rate for 8 year.
2: Goal to push 100 Arab share loan under 1 year. Low, fixed rate for 4 year.
3: Double/Triple working loan for business. Let, D bank provide working loan for business freely.
4: Immediately fix cooperative NPL by making it easy to sell collateral- by providing easily loan to buyers.
5: And policy I mentioned below months back.
-------- Dated: Tue Jun 10, 2025 10:54 am
Upcoming monetary policy should focus on kickstarting the economy, share market 'good companies' and end banking/cooperative crisis:
(Always remember, Monetary policy runs the economy while Fiscal policy runs the government, development etc)
Kick starting the economy/housing, share market 'due to lack fund, players are operating only low capital companies- even in same sector low capital is booming while high capital are still in depression', rescuing BFIs and cooperative:
1: Increase working capital loan for business. Let Development banks provide working capital loan freely.
After cooperative collapsed, they could not provide business loan which lead to economic collapse 'one of the reasons' cause NRB limited working capital loan.
2: Increase Personal loan limit to 2.5 crore.
3: Increase housing loan limit to 5 crore.
4: 15 crore limit for share loan should be scrapped.
5: During margin call- other assets could be used- land/building, gold etc.
6: Provision for good loan should be 0. Good loan should not need to keep 1% provision.
7: Share loan's Risk Weightage should be 100%.
8: Let BFIs give share loan up to 100% of their capital and reserve.
9: Interest on older loan should not change by more than 2.5% over 5 year.
10: Let BFIs freely invest their capital and reserve in share market. Let BFIs invest in BFIs. Let BFI buy their own stock after taking permission.
11: Let, BFIs invest in foreign treasury and share market up to 25% of their capital.
12: BFIs main income should come from investment and other services within 5 year.
13: One of the main reason there is banking crisis and cooperative crisis is BFIs and borrowers are unbale to sell their collateral. Monetary policy should assist in selling those assets:
Land and building and vehicles taken over by BFIs/cooperative and also those in collateral could be auctioned.
a: NRB should make it easy to auction those by easing monetary policy to sell those collateral or assets taken over by BFIs and cooperative. Let BFIs provide unlimited loan and at below cost interst during such auction.
b: Through such auction 60/80% such assets should be sold. 20% at a time, once in every 6 month.
c: BFIs should offer their fixed interest rate. And that rate should be auctioned. Borrower/Buyer should offer their best interest to the BFIs. BFIs should first offer their minimum rate then through auction, buyer/borrower should bid on that offer and the highest bidder should get the collateral/asset. The that rate should be fixed for certain year. Let's say cheap interest rate for up to 5 year. And after that market should decide the rate and NRB should make it easy for borrower to change lender. ((((((This is corrected, added from previous post)))))
d: Since it is auction and only 20% of the total valued assets should be sold at a time, banks or owner of those collateral should offer their heavily discounted fixed price.
14: From government side: to kick start economy, housing, share market:
a: VAT on cement should be 0 for one year, 5% next year and 8% in the third year.
b: Dividend distribution 'BFIs, Insurance etc': Reduce normal reserve requirement to 0% while giving dividend for 1 year, 25% of the requirement during 2 yr and 50% during 3rd year. This should increase consumption capacity.
[Goal should be kick starting the economy, lift share market and rescue banking and cooperative. If above is not enough, more move should be made in next 3 month]
