NRB projects liquidity crunch

Wed, Sep 21, 2011 12:00 AM on Others, Others,
KATHMANDU:
Nepal Rastra Bank has predicted that development banks and finance companies may face liquidity crunch after Dashain and Tihar.

“Generally, the depositors shift their deposits to commercial banks once they withdraw from development banks and finance companies,” the central bank executive director Vishnu Nepal informed the lawmaker on Tuesday. “If the trend continues, Class B and Class C financial institutions will face liquidity crunch after the festive season,” he said, appearing before before subcommittee under PAC of Legislature Parliament. The PAC has recently formed a subcommittee to study the condition of Banks and Financial Institutions.

Source: THT