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KATHMANDU, April 16: Nepal Rastra Bank (NRB) will mop an additional Rs 30 billion in liquidity on Wednesday. As banks fail to find suitable investment opportunities, excess liquidity continues to pile up in the banking system. In response, the central bank has consistently stepped in to mop the surplus liquidity from the market.
The NRB will withdraw the investable funds for 21 days through its deposit collection instrument. Banks and financial institutions can submit their online applications by 3 pm today.
NRB to mop additional Rs 40 billion from banking system for liq...
According to NRB, banks and financial institutions collected deposits totaling Rs 6.83 trillion by April 12. However, they invested only Rs 5.59 trillion in credit during the same period.
They maintained a credit-to-deposit (CD) ratio of just 79.40 percent during the review period, which left them with over Rs 700 billion in investable funds (liquidity). But due to inadequate investment opportunities, they have not been able to deploy these funds.
