Share mortgage loans in Nepal up to 50 lakhs 100 percent risk load

Jul Sun 2023 01:58:51

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Share mortgage loans in Nepal up to 50 lakhs 100 percent risk load

Kathmandu. Nepal Rastra Bank, which currently calculates up to 25 lakhs at 100 percent, has made the limit of the risk load of share mortgages to 50 lakhs. The National Bank has made this arrangement by issuing an instruction. The National Bank announced monetary policy 2080/081 and said that there will be some changes in the risk burden of share securities.

Even now, the provision of maintaining 150 percent risk weight in such loans above 50 lakhs remains the same. Rastra Bank has issued a circular on Friday according to the monetary policy. Nepal Rastra Bank has kept the bank rate unchanged. Releasing the monetary policy for the fiscal year 2080-81, the National Bank has informed that the bank rate has been kept unchanged at 7.5 percent and the deposit collection rate has been reduced from 5.5 percent to 4.5 percent. Considering the internal and external economic scenario, the policy rate has been reduced by 50 basis points to 6.5 percent.

According to the National Bank, the provision of permanent liquidity facility at bank rate and overnight liquidity facility at policy rate has been maintained. If the weighted average interbank interest rate taken as the operational target is higher than the bank rate and lower than the deposit collection rate, the secondary market transactions and deposit collection will be opened.