February 29: The umbrella organizations of banks and financial institutions have protested against the police crackdown on bankers saying that the latest arrests have terrorized the financial sector.

The Nepal Bankers Association, Development Bankers Association, Nepal Financial Institutions Association and Nepal Microfinance Bankers Association issued a joint statement on Wednesday and requested the concerned agencies of the state to be serious as the police crackdown on an essential and sensitive sector like the banking sector has weakened the morale of the employees.

"Banks and financial institutions of Nepal have been conducting banking transactions in a transparent manner by following the prevalent laws and regulations as well as the principles of the banking sector," the statement said. If the arrest is not stopped, there may be a big challenge in this sector. So, we urge you to take this matter seriously.”

The statement claimed that the employees and the board of directors of banks are working with good intentions in accordance with the law, but in the event that someone acts with mala fide intentions, the people involved in it have been and should be prosecuted according to the existing laws.

The bankers’ organisations said they are ready to cooperate if someone is involved in illegal activities but maintained that it is not appropriate to arrest someone who is not directly involved in any incident just because the employee signed a document or on the basis of his/her post.

"The investigation process related to banking offense should be 'first listen and then arrest', but the culture of 'first arrest and listen’ has become the norm," the statement said, adding, "It has seriously affected the mental and social well-being of the bankers, the morale of employees has diminished and it will affect the expansion of credit. And we want to inform everyone related that it will affect the development of the economy as a whole.”

Associations have clarified that banks, financial institutions are disbursing loans subject to the instructions issued by the central bank. They urged the agencies concerned to ensure that the employees working in the financial sector can work without fear.