Kathmandu: The amount of liquidity to be invested in banks and financial institutions is continuously increasing. Due to the government expenditure at the end of the last fiscal year coming to the banks and financial institutions, no demand for new loans, increase in remittances, the amount to be invested in the financial system is increasing. According to the NRB, there is an investment of around Rs 205 billion in the financial system till Thursday.

The liquidity in the bank has increased as there is no demand for new loans due to the lockdown.

There is no demand for loans from banks and financial institutions even after the start of the new fiscal year. Banks say that there is no demand for new loans even though the old borrowers have added some loans. NRB has made an arrangement to add 20 percent credit limit to the loan approved last April. Chairman of the Bankers' Association, Bhuvan Dahal, said that there was no demand for new loans in large quantities even though some loans were given under this arrangement. He estimates that the demand for credit will increase as the economy continues to grow. In recent months, some 9LCs have been opened in the bank. Bankers say that the order has not stopped even though the opening rate of LCs in July is a bit lower than last July. Currently, LCs are open for importing goods targeting Dashain and Tihar.