Kathmandu- Nepal’s banking sector has expressed serious concern over a series of attacks on employees of banks and financial institutions, warning that continued criminal violence could pose risks to depositor confidence, financial discipline, and the overall stability of the financial system.
A meeting convened on Wednesday under the auspices of the Nepal Bankers Association (NBA), the umbrella organization of banks and financial institutions, discussed recent incidents of violence targeting bank staff, particularly those involved in loan recovery and field operations. Representatives from category A, B, C, and D financial institutions unanimously decided to formally raise the issue with the Prime Minister and seek immediate government support to ensure employee safety and uphold the rule of law.
Nepal Investment Mega Bank (NIMB) Chief Executive Officer Jyoti Pandey and NIC Asia Bank CEO Sujit Kumar Shakya had earlier lodged formal complaints with the NBA following attacks on their respective employees.
NBA President Santosh Koirala said the meeting held extensive discussions on the petitions received from member institutions. “We have decided to seek time with the Prime Minister to apprise him of the seriousness of the situation and to urge concrete measures, particularly to ensure the safety of employees engaged in loan recovery and fieldwork,” he said.
Former Nepal Rastra Bank Executive Director Nar Bahadur Thapa warned that such incidents pose a direct challenge to financial system stability. He said some individuals appear to be encouraging violence for publicity, and stressed that both the government and the central bank must be alert to activities that undermine trust in the system.
“If the government does not take this issue seriously, not only depositor confidence but the entire financial sector could be destabilized,” Thapa cautioned.
In recent days, a bank employee working on loan recovery at NIMB’s Ghorahi branch in Dang was physically attacked by a group. Similar incidents have also been reported involving employees of Jyoti Bikas Bank in Saptari and NIC Asia Bank in Itahari.
The Nepal Investment Mega Bank Employees’ Union has drawn the attention of Nepal Rastra Bank, stating that bank employees are increasingly feeling insecure. Union President Shivahari Bhandari said the Ghorahi incident was a deliberate attempt to cause serious harm and should not be viewed as an isolated case. “This is a direct challenge to the rule of law, financial discipline, and the values of a civilized society,” he said.
According to Nepal Rastra Bank data, as of December 21 total deposits in the banking system stood at approximately Rs 7.64 trillion, while total credit flow was Rs 5.71 trillion, resulting in a credit-deposit ratio of about 73.93 percent. Economists note that while deposit growth reflects continued public trust in banks, weak credit demand signals broader economic uncertainty.
Bankers argue that attacks on employees involved in lawful loan recovery not only disrupt operations but also threaten the savings of ordinary citizens, as bank lending is based on public deposits. Some executives warned that sustained attacks and incitement to default—often amplified through social media—could damage financial discipline in a manner similar to past cooperative sector failures.
Participants in the NBA meeting expressed disappointment over what they described as silence or inadequate response from regulatory bodies and security agencies. “The tendency to politicize incidents or shield perpetrators is worsening the situation and placing undue pressure on field staff,” one participant said.
Nepal Rastra Bank has also urged the government to ensure the safety of bank employees working within the legal framework. Central bank spokesperson Guru Poudel said that while the regulator is prepared to address borrower grievances through lawful mechanisms, physical threats and violence undermine transparency, public trust, and the rule of law.
The banking sector directly employs more than 50,000 people and supports many more indirectly. Bankers and economists warn that continued insecurity could disrupt credit flow to productive sectors, widen the credit-deposit gap, and slow overall economic activity.
While recent incidents do not yet amount to a systemic crisis, experts say they should be treated as a serious warning. Strengthening employee security, resolving credit disputes strictly through legal channels, and improving financial literacy are seen as essential to protecting depositors’ interests and maintaining financial stability.
