Nepal Business News - NepalBizNews.com

I have been throughly about the Mr. Ohashi articles towards the banking industry of Nepal. However, day by day the banking and financial instutitions are facing critical positions to meet the customers obligations. However, the stock price is jumped in geometrical ratios within 1 year. As a regular reader of nepali banking news. Who is the responsible to give guarantee for the public deposit money, of course you simple answer. If I am not wrong, private people are operating the business, lending as per their own discretion for their personal benefits through their related firms from the depositors money and paying by Central Bank. Depositor never have had feel safe of their money, where they learnt from the Nepal Bank Ltd. Rastriya Banijya Bank, Nepal Bangladesh Bank, Nepal Credit and Commerce Bank and even Nepal Development others too. It's all are happening one by one due to lack of good governance of the banking industry, questioning of the audit profession and their standard. In addition, NRB mushroom styles for granting the licence/approval. In this scenario, how such bank are willing to face marketing challenges after WTO entries 2010 and beyond. Therefore, the liaisoning body, independent auditors, general public should be aware of public funds/deposits, unless they may face panic situation in the future and loose their hopes towards the banking industry and financial institutions and trust.
(Posted by N Sharma, November 18, 2007, 1:55 PM)

I am presently a US resident but was actively involved in the banking sector in Nepal. Mr. Ohashi has correctly pointed many inherent flaws in our financial system. Even Nepal Bank and Rashtriya Banijya Bank were not only declaring profit but distributing dividends before independent audit declared them insolvent. The fact of the matter is they would still be insolvent had they been banks in any country in the West. 70-80% of all banks and finance companies can be technically called insolvent by western standards. All the local auditing is fabricated and NRB approval manipulated. So are the prices of stocks. Everything is going to come crashing down someday. Thapa
(Posted by Kriti Thapa, April 19, 2007, 10:38 AM)

A banking disaster averted, but was a lesson learned? - by Ken Ohashi