Liquidity in banks and financial institutions has finally started to ease. As per the details provided by the Nepal Bankers Association, the deposits worth Rs. 58 billion have been added in seven days.
During the period, credit worth only Rs. 9 billion has been disbursed. According to the association, the deposits in the bank has been added from Rs. 4.2 trillion to Rs. 4.3 trillion while credit jumped from 4 trillion to 4.1 trillion.
The decision of the Nepal Rastra Bank (NRB) to allow the banks to count up to 80 percent of the balance of the local levels in the bank as a deposit has had a positive impact. Similarly, interbank interest rates have also declined during the same period.
