Good sign for stock market - Now CD ratio is 89.14

Jul Sun 2022 01:38:22

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Good sign for stock market - Now CD ratio is 89.14

Kathmandu: The widespread liquidity crunch in the bank is likely to ease somewhat. The savings ratio (CD ratio) that banks have to manage has also come down to 90 now. The bank's index has been above 90 for the past few months. 90 is the point at which more banks cannot invest. That is, CD radio should not go above 90.

According to the latest data released by Nepal Rastra Bank, the savings and investment ratio is 89.14 percent, up from 89.26 percent before that. During this period, the banks collected Rs 9 billion in savings while the investment was only Rs 1 billion.

What is the effect of liquidity on the stock market? There is a lot of understanding that the recent liquidity crisis has had a direct impact on the stock market. The loan could not be effective as there was no money to invest in the bank. As a result, the share pledge loan was also declining.

Many understand that liquidity will have a positive effect on the stock market as well. The stock market has been declining since last year's monetary policy, when the National Bank tightened its grip on equity loans.