Share collateral loans do not affect business investment

Sep Fri 2021 11:57:03

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Share collateral loans do not affect business investment

Kathmandu. Governor of Nepal Rastra Bank Maha Prasad Adhikari has said that the limit imposed on share pledge loan through monetary policy for the current fiscal year will not affect the share pledge loan taken for industrial and commercial purposes. Governor Adhikari, who was present at the Confederation of Nepalese Industry's program 'Discussion in Confederation', said that the policy was aimed at those who invest in the stock market by taking loans on the security of shares.

Stating that the central bank is interested in increasing the national product, Governor Adhikari said that the NRB will always support in the field of industrialization and job creation. The NRB had made an arrangement in the monetary policy that a person or institution can borrow up to a maximum of Rs 40 million from a financial institution and up to a maximum of Rs 120 million from the overall financial system.

During the interaction program, Governor Adhikari said that the NRB has taken forward various reforms and the loan-to-deposit ratio (CD ratio) has been implemented accordingly. He said that the central bank has taken the policy of using the banking sector in pure banking.