Kathmandu. Due to the lack of investable resources (liquidity), it has been found that the business growth of banks and financial institutions in the financial year 2078/079 is not satisfactory. Bank officials say that deposits in banks have not increased due to large amount of funds being withdrawn for import of goods and due to this the business growth is not satisfactory.

In the monetary policy of the last fiscal year 2078-79, Nepal Rastra Bank had set a target of increasing the credit flow to the private sector by 19 percent. However, according to the data provided by the Nepal Bankers Association, the total credit investment of commercial banks has increased by only 14.39 percent. The growth rate of deposits is only 10.44 percent. When businessmen imported goods from loans taken from banks, it did not help in capital formation within the country and deposits could not increase.

Sunil KC, Vice President of Nepal Bankers Association and Chief Executive Officer of NMB Bank, says that due to the lack of resources, the credit expansion has not been according to the target of the monetary policy of the last financial year.