the new role of central bank:

need to be seen as part of one problem

these tow cannot be seen in two different instances.
lets not forget that Nepal is emerging from a post war scenerio
little were economic policies were taking place that another calamity, naturally
in the central part of the country struck.
The Nepalese financial system is marred with high Non-Performing Assets (NPAs),
low
capitalization, segmented market service, weak legal and institutional system, a
nd lack of
corporate culture.
debt management,l financial sector management, currency managemnet, foreign exch
ange management
controlling inflation
inflation is always a debated tgopic. In the strategic plan, the central bank ha
s placed inflation control as its topmost priorities.
in april 2015, before earthquake data, the inflation was already quite high
nepal is marred by high inflation rates since ...
[Hyper-]inflation is always and everywhere a monetary phenomenon
uote does not differ slightly in the case of Nepal
what money was there and how much more money came

Milton Friedman q

In the donor's conference held in July 22 world leaders pledged to help Nepal in
overcoming the disastor.
what lies ahead for the central bank is the challenge to manage the monetary bal
ance in the economy and subsequently
with the objective of preserving macroeconomic stability.
two objectives of varying nature. In one hand CB has the role to deal with huge
inflow of aid and scaling up public investment
and in the other hand there is the macroeconomic targets it has set.
A case in site can be Haiti where public investment increased by much less than
planed
safeguarding macroeconomic stability, channelizing funds and monetary control
The current monetary policy objectives are thus more than one controlling inflatio
n and
attaining external sector stability.
determining priorities and defining core objectives
for the NRB,
Role of central bank in economic development:
-need to shift from traditional to non-traditional form
-promotion and maintenance of a rising level of production, employment and real
income in the country.
-In order to remedy this, the central bank should extend branch banking to rural
areas to make credit available to peasants, small businessmen and traders.
-In underdeveloped countries, the commercial banks provide only short-term loans
. Credit facilities in rural areas are mostly non-existent. The only source is t
he village moneylender who charges exorbitant interest rates.
-The hold of the village moneylender in rural areas can be slackened if new inst
itutional arrangements are made by the central bank in providing short-term, med

ium term and long-term credit at lower interest rates to the cultivators. A netw
ork of co-operative credit societies with apex banks financed by the central ban
k can help solve the problem.
-Similarly, it can help the establishment of lead banks and through them regiona
l rural banks for providing credit facilities to marginal farmers, landless agri
cultural workers and other weaker sections. With the vast resources at its comma
nd, the central bank can also help in establishing industrial banks and financia
l corporations in order to finance large and small industries.
-