Acting Governor of Nepal Rastra Bank Dr. Nilam Dhungana Timilsina said that there is a need of patience for some time as there is liquidity pressure in the banking system.

Speaking at the 3rd National Microfinance Members’ Conference in Kathmandu on today, Acting Governor Dhungana said that everyone needs to be patience for a while as the microfinance and overall banking sector is going through liquidity crunch. She said that there is a problem of liquidity and interest rate not only in the banking sector but also in microfinance.

Acting Governor Dhungana claimed that the overall economy and the people have suffered due to fluctuations in liquidity and interest rates. She said that since the business cycle will also be cyclical, everything will gradually improve. She mentioned that microfinance institutions have been an effective tool for 20 percent of the population in Nepal who are out of poverty and out of financial reach.

She said that despite various efforts for inclusive economic development in Nepal, 18 percent of the total population of Nepal is still below the poverty line. She said that microfinance has played an important role in supporting the economic upliftment of the poor and the target community, supporting gender based violence and women’s empowerment and reducing economic inequality.