Liquidity of banking system has improved and Interest rates are also decreasing - Economic survey

May Mon 2023 02:41:35

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Liquidity of banking system has improved and Interest rates are also decreasing - Economic survey

Kathmandu. The liquidity of the banking system has improved significantly. The economic survey report of the current fiscal year 2079/80, released by the Ministry of Finance on Sunday, showed this. According to reports, the liquidity of the banking system has improved significantly in recent months. Similarly, it is mentioned in the survey that the interest rate is also decreasing.

Lately, there was a decrease in liquidity and investable instruments in Nepal's banking system, and the interest rate increased. At a time when the economy is gradually recovering due to the effects of Covid-19, the effects of the Russia-Ukraine war and the rapid increase in imports led to a decrease in liquidity and investable assets in the banking system. Which also increased the interest rate.

According to the survey report, financial access is continuously increasing. In recent years, the number of banks and financial institutions is decreasing through mergers and acquisitions, but branch expansion and financial access are increasing. During that period, it is said that the trend of doing banking transactions through digital means is also increasing. There has also been a significant increase in payments made through QR codes. There has also been an increase in transactions through other electronic payment devices.