#Monetary Policy 2022/23

NRB to tighten loans to private sector, says it will be maintained at maximum of 12.6 percent

Published On: July 22, 2022 05:21 PM NPT By: Republica  | @RepublicaNepal


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.

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. 

 


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