Kathmandu. Mahaprasad Adhikari, Governor of Nepal Rastra Bank, has said that interest rates are falling. The Governor's official said that since the Nepali economy indicators are gradually becoming positive, the interest rates of deposits and loans are decreasing.

Governor Adhikari said that Nepali banks are safe. According to the Governor's official, there is no need to fear as the financial indicators have improved recently. There is no need to panic even though the bad loans of banks have increased this year compared to the last financial year. The banks of Nepal are safe," said the governor's official.

Senior Vice President of Confederation of Banks and Financial Institutions Nepal (CBFIN) Bhoj Bahadur Shah has said that the deposit interest rate will be reduced by 2 percent. He said this while speaking at a press conference organized by CBFIN.

He said that 2 percent interest should be lower than others in the construction and industry sectors. In addition, he informed that the Minister of Finance and the Governor have now committed to manage the interest rate at 9.9 percent. He said that banks are forced to pay up to 40 percent tax when it is revealed that they are not earning much.

In eight months of the financial year 2079/80, comprehensive money supply has increased by 5.3 percent. In the same period of the previous year, the money supply increased by 3.10 percent. On an annual point basis, wide money supply has increased by 9.10 percent at the end of February 2079.

During the review period, the growth rate of deposits is higher than that of loans. During the review period, deposits in banks and financial institutions increased by Rs.280 billion 57 crore (5.5 percent). In the same period of the previous year, such deposits increased by Rs.192 billion 120 million (4.1 percent). On an annual point basis, deposits in banks and financial institutions increased by 10.5 percent at the end of February 2079.

Regular liquidity has flowed into the banking system. During the review period, this bank received Rs.377 billion 27 billion through repo, Rs.83 billion 85 billion through direct purchase, Rs.2720 billion 49 billion through permanent liquidity facility and 515 billion 67 billion through overnight liquidity facility, totaling Rs.3697 billion 28 billion (based on business ) Liquidity is flowed.

Although short-term and bank interest rates have increased over last year, they have started to decrease compared to the previous month. The weighted average interest rate of 91-day treasury bill is 9.33 percent in February 2079. The weighted average interest rate of inter-bank transactions between commercial banks is 7.18 percent. The average base rate of commercial banks in February 2079 was 10.64 percent, the weighted average interest rate of deposits was 8.37 percent and the weighted average interest rate of loans was 13.03 percent.