Kathmandu. The CBFIN has expressed serious concern over the arrest of the CEO of Nepal Investment Mega Bank. KATHMANDU: The Confederation of Bank and Financial Institutions (CFN) has expressed serious concern over the arrest of the chief executive officer of Nepal Investment Mega Bank over the issue of auction of its securities.
It is well known that the Bank and Financial Institutions Act, 2073, Secured Transaction Act 2063 BS and the integrated directive of Nepal Rastra Bank (NRB) have clear provisions regarding loan disbursement, loan recovery and mortgage auction. The entire banking sector has become frightened, frightened and frightened by the subsequent look at the professional decisions made on the basis of the prevailing rules and regulations from a criminal point of view and the arrest of a professional without substantiating the charges through objective study and investigation.
After the liquidation of a borrower institution, will the bank and financial institution having the first right over the collateral assets of that institution be the first right of the lending bank or the government of Nepal? Should the banks and financial institutions that invest the money of the savers first recover the loan and protect the deposits of the people or decide who will be the mortgaged property? A serious question has arisen.
What will happen if the companies that have invested billions of rupees in loans by the banks come under the control of the Government of Nepal for some reason and due to some reason the loan is damaged and there is a situation where there is no recovery? It has also created complex legal questions and serious confusion. In addition, if the government is not allowed to auction the collateral or is imprisoned while recovering the loan, then the plans, policies and programs of national importance issued by the Government of Nepal will also be in jeopardy.
“The state and regulatory bodies should investigate into any illegal activities committed by the banks and financial institutions and the concerned banks and financial institutions should provide necessary support to the state and its subordinate bodies in this regard,” he said. We are clear that action should be taken as per the law if any wrongdoing is found in the investigation. However, it is not justified to be made a liable person to take action without regard to the actions done on the basis of the prevailing law. We appeal to the government and its subordinate bodies to be serious and sensitive in time towards such acts that would cause serious damage to the social life and prestige of the professionals, to flee from the purpose of contributing within the country, to run the day-to-day operations of banks and financial institutions, financial governance, interest of depositors, trust of shareholders and customer service, and to cause unimaginable damage to the entire economy. Sibfin said in a statement.
