Ratra Bank brings amendment in CCD ratio criteria; Find the full circular

Wed, Jan 15, 2020 11:34 AM on Economy, Latest,

Nepal Rastra Bank (NRB), in its latest circular, has published some amendments in the Unified Directives 2076.

The circular states that banks are required to maintain credit to core capital and domestic deposits (CCD) ratio of 80%. In order to minimize liquidity risks, NRB has directed the banks to maintain the CCD ratio for credit and deposits made in domestic currency at a maximum of 80%. Similarly, the banks can include refinancing loans for this calculation.

Similarly, if the banks have issues debentures of more than 5 years maturity period then they can float the full amount (100%) as loans. Likewise, if they have taken long-term loans of more than 3 years from foreign banks, financial institutions or other institutions in foreign currency then that amount can also be floated as a loan in full value. In these two fund sources the CCD ratio of 80% is not applicable.

Inter-bank deposits can't be used while calculating the CCD ratio. The inter-bank deposits refer to loans and advances provided by any licensed institution to other licensed institutions.

The full circular can be viewed below:

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