NRB calls meeting to ease inter-bank loans
Kathmandu, June 18:
Nepal Rastra Bank (NRB) has called a meeting of bankers on Sunday to ease inter-bank loans for troubled banks and financial institutions (BFIs) as some banks have refused loans to a few BFIs with a high loan exposure to the realty sector and a high credit-to-deposit ratio.
“The governor has invited us for a discussion to end the prevailing crisis of confidence among bankers for inter-bank lending,” said Ashoke Rana, president of the Nepal Bankers Association. Inter-bank lending was not so difficult in the past, according to him.
As one after another FIs landed in trouble as a result of an acute liquidity crunch and bad corporate governance, banks have been cautious about issuing inter-bank loans to troubled BFIs.
Source: Kantipur
Nepal Rastra Bank (NRB) has called a meeting of bankers on Sunday to ease inter-bank loans for troubled banks and financial institutions (BFIs) as some banks have refused loans to a few BFIs with a high loan exposure to the realty sector and a high credit-to-deposit ratio.
“The governor has invited us for a discussion to end the prevailing crisis of confidence among bankers for inter-bank lending,” said Ashoke Rana, president of the Nepal Bankers Association. Inter-bank lending was not so difficult in the past, according to him.
As one after another FIs landed in trouble as a result of an acute liquidity crunch and bad corporate governance, banks have been cautious about issuing inter-bank loans to troubled BFIs.
Source: Kantipur
