Lack of liquidity, the interbank interest rate reached around 7 percent

Feb Wed 2022 02:59:38

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Lack of liquidity, the interbank interest rate reached around 7 percent

Kathmandu. Lack of investment (liquidity) in the banking system is increasing. The interbank interest rate has risen to an average of 7 percent in less than two weeks. This also shows the liquidity crisis in the banks.

The rise in interbank interest rates is due to increased liquidity shortage in banks. According to the NRB, the interbank interest rate has risen to more than 5 percent. The interbank interest rate has come down to 6.89 percent from 6.93 percent on March 25. This means it is the highest of the current fiscal year. Earlier, it was a little more than 5 percent, but now the interbank interest rate has reached around 7 percent.

If the bank needs money, go to the National Bank and take a loan and inter-bank transactions are taking place. The interbank interest rate is 6.89 percent due to the banks requesting the NRB in case of need, as it takes time for the NRB to send the money and the bank immediately takes the required amount from the interbank bank.