September 26: Industrialists have expressed concerns regarding the excessive hike in interest rates by almost all commercial banks effective from September 17.

Province 1 chapter of the Confederation of Nepalese Industries (CNI) has drawn the attention of Nepal Rastra Bank to this issue. CNI Province 1 members complained that the banks ignored their suggestion not to increase interest rates for one year.

Stating that the banks were also indulged in unhealthy competition to increase interest rates in the past, the Province 1 chapter of CNI reminded that such move did not help in addressing the liquidity crisis. It argued that the banks should not have increased the interest rates at a time when the central bank has already mentioned in its report that the liquidity crisis is further deepening.

The industrialists argued that the banks’ move has threatened the existence of the industrial sector which has been reeling under the effects of the Covid-19 pandemic, Russia-Ukraine war. The Province 1 chapter of CNI also noted that the industries are struggling also because of the decline in purchasing power of the consumers.

Issuing a statement, CNI Province 1 chapter said that the banks, which are running in profit, are making extra money at the expenses of the investors and industrialists. The statement further says that move that benefits the banking sector but threatens other sectors is an attempt to establish a system of feudal lords who are represented by banks in the modern day.