KATHMANDU, July 22: Nepal Rastra Bank (NRB), in a bid to tighten the loans to private businesses, has targeted to reduce the threshold of private sector loans to 12.6 percent at maximum.
In the last fiscal year, the limit that the banks and financial institutions (BFIs) could provide to the private sector was 19 percent at maximum. NRB has been considering the problem of liquidity crunch in the Nepali banking system to excessive loans provided to the private sector.
Revised interest rate corridor system introduced
Similarly, the central bank is controlling the expansion of broad money supply to a maximum of 12 percent from the target of 18 percent of last year. Broad money refers to the virtual money generated by the BFIs.
Likewise, the central bank says it will limit the consumer inflation to a maximum of seven percent as targeted by the budget for fiscal year 2022/23.
