Nepal is facing an extreme liquidity crunch at the moment. Experts claim that fall in remittance, low capital expenditure, import-export imbalance, and rumored channeling of funds to non-banking systems like cryptocurrencies, Hundi, etc. are the major causes.

Furthermore, as the economy gained pace after the lockdown, the demand for capital has skyrocketed. Thus, banks have been involved in aggressive credit expansion at a time when the deposit is declining. In retaliation, depository financial institutions like commercial banks, development banks, finance, and microfinance companies are voraciously mobilizing their marketing team to sell various deposit products at attractively high-interest rates.

The prime…


Read full article at ShareSansar.com


Leave a Reply

Your email address will not be published.


You May Also Like

Budget positive but challenging for implementation: NCC – |

Nepal Chamber of Commerce (NCC) has observed that the budget government brought…

NAV of Mega Mutual Fund 1 Stands Below Par Value in the Month of Baisakh – |

The NAV report of “Mega Mutual Fund 1 (MMF1)” has been unveiled…

Too Many Bad News in Single Day: NEPSE Loses 2.17% and Closes at 2,661.44 – |

The NEPSE index closed at 2,661.44 today after losing 58.99 points from…

SEBON Approves 5 More Institutional Investors to Participate in IPOs Via Book-Building Process – |

Securities Exchange Board of Nepal (SEBON) has chosen five more institutions to…

Last Day to Apply for IPO of Emerging Nepal Limited – |

Emerging Nepal Limited is closing its IPO issue today. Investors have till…