July 3: Operators of banks and financial institutions (BFIs) have warned to stop the banking business if the attacks on their employees do not stop right away.

The Confederation of Banks and Financial Institutions Nepal (CIBFIN), an umbrella organization of bank and financial institutions, issued a press statement on Sunday demanding security guarantee from the government and legal action against individuals or groups who attack banks and financial institutions. The statement has also urged the government to make effective security arrangements for the operation of banking business.

Recently, disputes between businessmen and banks have increased after banks and financial institutions emphasized on debt recovery. In some districts, the businessmen protested against the bank and also resorted to physical attacks on bank employees.

The meeting of the confederation held on Friday decided to file a complaint for legal action against individuals or groups who attack banks and financial institutions and their employees. They say that efforts to discourage non-payment of loan interest and to physically assault, humiliate, or prevent employees from doing their jobs are being done continuously in various places.

"CBFIN and all its affiliate members are fully committed to file a complaint against any person or organization that causes damage to the credibility or property of banks and financial institutions under any pretext by creating obstacles in the banking business," said a banker after the meeting. The statement released by CBFIN has urged the prime minister, home minister, home secretary, inspector general of police, chief district officers of 77 districts and all stakeholders to make effective security arrangements for banks and financial institutions and all employees.

The association has also warned that if the government is not able to create an environment for operation of banks, the banking services will be completely closed.

“If the government and its agencies cannot ensure an environment that facilitates the fulfillment of duties and responsibilities by using the rights given to banks and financial institutions in a safe environment, then all banks and financial institutions licensed by Nepal Rastra Bank may have to completely shut their services,” reads the statement, adding,  “This will create a serious crisis for all stakeholders including the depositors, creditors and ultimately create an unimaginable crisis in the economy as a whole, so we want to draw the attention of all concerned.”

Earlier, Nepal Bankers Association, Development Bankers Association Nepal, Nepal Financial Institutions Association and Nepal Microfinance Bankers Association had also issued a joint statement and warned that they will act strongly against the continued threat to banks and financial institutions.

The bankers say that some people have obstructed the service delivery of some branches of banks and financial institutions as well as microfinance companies in Itahari, Sunsari, Birtamod and other places of eastern Nepal. They added that the employees have been threatened and customers deprived of essential banking services.