KATHMANDU: Finance Minister Rameshwor Prasad Khanal has said the culture of study and research is weak in banking and financial institutes (BFIs), resulting in dearth of knowledge to identify the areas of investment.

In his address to the 61st anniversary of the Rastriya Banijya Bank here today, Minister Khanal said liquidity increases significantly once the FBIs ignore study and research.

It has further cascading results like increase in unemployment and expansion of consumption-focused economy, he argued.

The Minister expressed worry over unwise use of remittances in the country. He urged the BFIs to conduct rigorous studies so that area of investment can be identified well, national economy expanded and employment created.

He criticized, “BFIs are focused largely on the investment as per proposals forward by industrialists and entrepreneurs.

They are ignoring how they can chip in the national initiatives to create employments and spur production. Study and research help FBIs to generate idea to secure high return.”

He admitted that huge chunk of remittance was not utilized for long-term economic transformation but for daily consumption.

As a government financial entity, the Rastriya Banijya Bank should be responsible to pour in remittance in productive sector so that it could contribute to economic prosperity.

Once the productive sector witnesses sufficient investment, it helps spur domestic production and reduce imports, the Minister reminded.

On a different note, Finance Minister said the major mandate of the present government is to successfully hold the March 5 election to the House of Representatives. So, government expects all sides’ cooperation to this regard.