KATHMANDU: Banks have stated that they will not be able to meet the target set for investment in the coming fiscal year as the long-standing lack of liquidity (investable amount) in the banking and financial sector is likely to continue. Stating that there are indications that the liquidity problem faced by the financial sector since […]
As the commercial banks have tightened loan disbursement to realty sector due to liquidity crunch, the recovery in the sector has only been gradual despite an uptick in real estate activities in the recent times.
Banking sector in Nepal has been experiencing a liquidity shortage for the past few months. All BFIs have been unable to provide loans to individuals and businesses in lack of cash flow. Again, the inflow of remittance has been declining and has been poor. Foreign currency reserves have declined significantly and Balance of Payment (BoP) has been in deficit. Nepali economy is facing these challenges at a time when efforts are imperative to revive it from the impact of the COVID-19 pandemic. In this context, Nepal Bankers’ Association (NBA) President and Chief Executive Officer (CEO) of Agricultural Development Bank Limited (ADBL) Anil Kumar Upadhyay talked about challenges and prospects of the banking sector with Laxman Kafle of The Rising Nepal. Excerpts:
Liquidity crunch may ease due to reduced demands of goods and services along with credit but may affect the economic growth prospect, experts have warned.
Liquidity crunch may ease due to reduced demands of goods and services along with credit but may affect the economic growth prospect, experts have warned.
KATHMANDU, Oct 28: Nabil Bank has announced to give 9.36 percent interest on three-month term deposits in the second week of the tightening of the interest rate by Nepal Rastra Bank (NRB).
