Kathmandu. 12 billion rupees have entered the banking system in one day. Due to the increase in demand for loans in banks and financial institutions, investable funds are piling up in the banking system. According to the statistics of Nepal Rastra Bank, deposits in banks and financial institutions have reached 56 trillion 55 billion rupees. As of last Tuesday, there were deposits of 56 trillion 43 billion rupees in banks and financial institutions.

Tthe credit deposit ratio (CD) ratio of banks is also continuously decreasing. According to Rashtra Bank, the current CD ratio has fallen to 82.88 percent. The CD ratio, which was 88.07 percent last July, is now continuously decreasing. Banks seem to be in a comfortable position in terms of providing loans. Banks can provide loans by maintaining a CD ratio of up to 90 percent. However, now the CD ratio of banks is less than 83 percent.

Now liquidity (investable capital) is increasing in banks. However, the demand for loans is very low. Especially due to the recent economic crisis, there is no demand for loans. Now the demand for goods and services in the market has decreased. The purchasing power of consumers has also decreased. The real estate business is also not encouraging. Moreover, the interest rate of bank loans is also high. In this situation, it is not possible to take a loan from the bank at an expensive rate, to do business, to buy and sell real estate. That is why there is no demand for loans in banks.

According to the statistics of the Nepal Rastra Bank, it has decreased even more. By last Tuesday, banks and financial institutions had invested a total of 48 trillion 62 billion rupees in loans. However, the next day, i.e. by Wednesday, it has decreased by 1 billion. During the period under review, commercial banks have provided loans of 43 trillion 2 billion rupees.

Interbank interest rate again down 2.5 percent

Internal transactions between banks, i.e. interest rates on inter-bank transactions, are also decreasing. As the liquidity in the banks becomes easier, the interest rate of inter-bank transactions is also decreasing.

According to the National Bank, the inter-bank interest rate has remained at 2.46 percent. Especially after the increase in liquidity in banks, the inter-bank interest rate has decreased. Due to lack of liquidity in banks, the interest rates of deposits and loans were also high. At that time, the interest rate of the money borrowed by the banks from each other, i.e. the inter-bank interest rate, also increased. This interest rate increased to 8.5 percent last year. However, in the last few years, this interest rate had reached 2 percent.