Monetary policy will reduce the risk limit of share and real estate loans

Jul Sun 2023 03:20:06

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Monetary policy will reduce the risk limit of share and real estate loans

Kathmandu. Rastra Bank is going to review the existing risk weighting arrangements for share mortgage loans, real estate loans and hire purchase loans. On Sunday, the monetary policy for the current fiscal year 2080/81 will be announced and such provisions will be reviewed.

  The National Bank has provided relief to investors through public monetary policy. Investors have welcomed the decision of Rashtra Bank to amend the existing arrangements regarding the risk burden of share mortgage loans. With the resolution of the issue that investors have been raising for a long time, the Sunday market also rose to a high level. The index reached 2227 points as the market rose by 63 points today.

The central bank has said that the risk weighting of real estate loans and hire purchase loans will also be reviewed. With this, the stock market, real estate and higher purchase sectors will get relief. Nepal Rastra Bank Governor Mahaprasad Adhikari has said that he will maintain 100% risk in share mortgage loans up to 50 lakh rupees.

Explaining the monetary policy of the current fiscal year 2080/81 to the public on Sunday, he said, - Before this, only loans up to 25 lakh rupees were subject to 100 percent risk burden. However, now it is going to be increased to 50 million rupees. However, the provision regarding the risk weight of 150 percent has been kept unchanged for loans above 50 million rupees, said the governor official.

The Rastra Bank has said that the existing investment arrangements will be reviewed to facilitate the investment from banks and financial institutions in private equity funds, venture capital funds that have received approval from the Securities Board.