Banks' investment in the stock market: Banks are buying shares of insurance companies and insurance companies are buying shares of banks

Dec Wed 2020 08:22:52

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Banks' investment in the stock market: Banks are buying shares of insurance companies and insurance companies are buying shares of banks

Kathmandu. NRB Governor Maha Prasad Adhikari has shown interest in the investment made by banks in the share market.

In the last few months, the governor has demanded the details of the investment of the banks, fearing that the banks have invested more than the prescribed range in the share market. The market is also expected to rise due to banks investing more than specified.

Brokers say that banks are now buying shares of insurance companies and insurance companies.

Suspecting that banks have invested more than specified in the stock market as a means of making short-term profits due to increased liquidity, the governor has asked the bank supervisors for details of the banks' investments.

Banks have increased their investments in the stock market to make short-term profits from the bull market, an official of the National Bank said.