Minister Rameshwar Khanal highlighted concerns over the weak condition of some government-owned financial institutions and stressed the need for clear policies and long-term solutions to address recurring problems.
Nepal Verified News
Wed Mar 18 2026
Finance Minister Rameshwar Khanal has stated that policy clarity is necessary to improve the condition of government-owned financial institutions.
Speaking at the 36th annual celebration of the Citizen Investment Trust, he pointed out that the condition of some financial institutions established in the past is concerning.
He said, “Among the rural development banks established by the Government of Nepal, it is unclear what happened to four of them. One bank has been merged with various agencies and is currently operating in a weak condition.”
Khanal also highlighted that in Nepal’s history, some government-owned financial institutions have needed government bailouts even before completing 35 years of operation. He noted that loans issued under policy-driven government guarantees have, in some cases, caused problems for the Citizen Investment Trust.
He added, “In Nepal’s history, government-owned financial institutions have required government rescue even before reaching 35 years. Loans issued under policy-driven government guarantees have, at times, created issues for the Citizen Investment Trust. We need to find the right alternatives and solutions.”
He emphasized the need to identify suitable long-term solutions to address these problems.
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