BFIs to get refinancing against fixed assets too
KATHMANDU, JUN 20 -
In an effort to give some respite to banks and financial institution (BFIs) from the prevailing liquidity crunch, the Nepal Rastra Bank (NRB) has initiated a process to allow BFIs to get liquidity under its special refinancing and lender of last resort facilities against their fixed assets too.
Currently, NRB provides these facilities against good loans and government securities such as bonds and treasury bills.
As the Nepal Rastra Bank Working Management Rule is mum on refinancing against physical assets of BFIs, the central bank has asked the government to amend the rules.
“We have already proposed the government agency concerned to amend the rule,” said NRB Spokesperson Bhaskarmani Gyawali.
The central bank, however, will not accept fixed assets of BFIs as collateral for normal refinancing, according to Gyawali. “But NRB may accept fixed assets for normal refinancing in future,” he said.
Source:Kantipur
In an effort to give some respite to banks and financial institution (BFIs) from the prevailing liquidity crunch, the Nepal Rastra Bank (NRB) has initiated a process to allow BFIs to get liquidity under its special refinancing and lender of last resort facilities against their fixed assets too.
Currently, NRB provides these facilities against good loans and government securities such as bonds and treasury bills.
As the Nepal Rastra Bank Working Management Rule is mum on refinancing against physical assets of BFIs, the central bank has asked the government to amend the rules.
“We have already proposed the government agency concerned to amend the rule,” said NRB Spokesperson Bhaskarmani Gyawali.
The central bank, however, will not accept fixed assets of BFIs as collateral for normal refinancing, according to Gyawali. “But NRB may accept fixed assets for normal refinancing in future,” he said.
Source:Kantipur
