The government has appointed Prof. Dr. Bishwo Paudel as the new Governor of Nepal Rastra Bank (NRB). He is a former Vice-Chairperson of the National Planning Commission and an economics professor at Kathmandu University. Known for his experience in microfinance and policymaking, Dr. Paudel takes charge after months of debate over the position.
What Will He Focus on First?
Dr. Paudel has made his priorities clear. His main goal is to remove Nepal from the FATF grey list, which affects international trust and investment. He also wants to strengthen supervision of banks, improve the quality of their loans, and ensure overall financial health.
Is This Role New to Him?
Not really. Though it’s different from university teaching, Dr. Paudel has worked in economic planning and was a board member of a commercial bank. He says monitoring and evaluation—key NRB tasks—are areas he’s already familiar with.
Who’s Responsible for Moving the Economy?
According to Dr. Paudel, the economy is the government’s job. NRB does not directly boost economic activity but supports government policies. He believes the Finance Ministry must lead, while NRB helps through monetary policy. If NRB policies are blocking economic growth, he promises to fix them.
What About Loan Problems in Banks?
Dr. Paudel knows that banks are struggling with loan quality and rising non-performing assets. He plans to talk directly to bank CEOs and other stakeholders to study the issues and find solutions. His main concern is protecting people’s savings and ensuring loan quality improves.
Can NRB and the Finance Ministry Work Together?
Yes, he’s confident. Although there were coordination issues in the past, especially during budget and monetary policy announcements, he says the relationship will now improve and both institutions will work in harmony.
What About Cooperatives and Their Regulation?
There’s growing debate on whether NRB should regulate large cooperatives. Dr. Paudel believes NRB needs more manpower and stronger supervision capacity before handling that. He is open to discussion, especially since another regulatory body already exists for cooperatives.
Is NRB Still Independent?
Dr. Paudel supports NRB’s legal autonomy. No one should interfere in its regulatory duties. But that doesn’t mean NRB should avoid coordinating with the government. He stresses the importance of independence with cooperation.
