How much Liquidity in Banks ? NRB pulling 72 billion liquidity from Banks of Nepal

Dec Tue 2023 03:15:27

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How much Liquidity in Banks ?  NRB pulling 72 billion liquidity from Banks of Nepal

Kathmandu. Even though there is more liquidity in the banking system, Nepal Rastra Bank is going to draw 25 billion rupees of liquidity again on Friday. Even when the government raised 7 billion domestic debt through development bonds on Thursday, after the interbank interest rate remained low, the National Bank took 25 billion liquidity from the banking system.

  Rastra Bank said that the 5.56 percent interest rate was maintained when the development bond of 7 billion for a period of 5 years was negotiated. Banks had submitted 35 billion 120 million worth of bonds worth 7 billion.

Recently, when the long-term development bond was talked about when the deposit collection instrument of about 2 percent has been deposited in the National Bank, the banks are ready to invest in it at an interest rate of 5.56 percent.  As the interbank interest rate is close to 2 percent even after the development bond issue, Rashtra Bank Economic Research Department Head Dr. Prakash Kumar Shrestha said.

On December 4, Rastra Bank also withdrew 25 billion Talata through the deposit collection tool Bolakbol. The maximum interest rate was 2.98 percent and the minimum interest rate was 2.49 percent, while the average interest rate was maintained at 2.7776 percent.

10 billion on January 3 and 10 billion on January 1 as well. 25 billion deposit collection equipment is maturing on the 6th. By doing this, the National Bank has drawn 72 billion 250 million from the banking system. One of the tools used by Nepal Rastra Bank to calculate excess liquidity with the banking sector for a certain period of time, deposit collection is also a tool. Under this, Nepal Rastra Bank collects deposits from banks and financial institutions after determining the interest rate on the basis of negotiation. From which the liquidity will be diluted.