KATHMANDU, May 7: Traffic Police has opened a corridor under the bridge of new Bus Park as part of its plan to ease traffic congestion in the Valley. The Metropolitan Traffic Police Division on Monday constructed the corridor as part of action plan on traffic management and pollution control.
BIRGUNJ, May 6: After the ups and downs and uncertainties that lasted for a decade, there are indications that the Birgunj Industrial Corridor has finally started to flourish. Within the past two years, several industries have been established in this corridor with an investment of billions of rupees.
KATHMANDU, Dec 22: Three hydropower projects, which are in their final stages to generate power, would face problem in lack of attention of the Nepal Electricity Authority in the construction of Kabeli Corridor Transmission Line.
KATHMANDU, Nov 15
Nepal Rastra Bank (NRB) has introduced working procedure for interest rate corridor system in line with the revision made in the Monetary Policy for the current fiscal year 2017/18.
The central bank issued the new working procedure to implement the interest rate corridor system with a fixed interest rate of lending and deposit to and from BFIs, as well as the policy rate.
By implementing the interest rate corridor system, the NRB wants to guide the short-term market interest rates of the banking sector within a certain range. Though the system was implemented by the NRB in FY 2016/17, the central bank has decided to revise the way it operates due to huge gap in the interest corridor. To fix the problem of huge gap in the corridor, the NRB has fixed the floor, ceiling and policy rates.
Standing liquidity facility (SLF) rate, which works as the ceiling in the interest rate corridor, has been fixed at 7 percent. This means that the NRB now lends funds to BFIs at 7 percent interest rate whenever they face shortage of liquidity for a short period of time.
On the another hand, the NRB has fixed the two-week term deposit rate at 3 percent which forms the lower bound, or the floor rate, in the corridor system. This is the rate that the central bank offers to BFIs for excess fund that they deposit at the central bank. Though similar to the SLF, this is the instrument through which BFIs borrow from the central bank for a relatively longer period of time, i.e. two weeks.
According to NRB officials, the central bank always aims to bring both the floor and ceiling rates closer to the policy rate. Now onwards, the short term market interest rates would not fall below 3 percent while it cannot climb above 7 percent.
Bankers say that the revised interest rate corridor system would help to correct the problem of huge gap seen between the upper bound and lower bound of the corridor in the last fiscal year contrary to the objective of guiding short term interest rates within a certain band. They also say that the interest rate corridor system will help to stabilize the interest rates of BFIs.
“The interest rate corridor system helps to keep check on interest rates volatility that the banking sector has been facing and ensure rate stability,” Bhuvan Dahal, CEO of Sanima Bank Ltd, said.
Though this may not necessarily directly or immediately affect the lending rates that general borrowers or deposit rates for general savers get, NRB officials say that the ultimate goal is to offer benefit of such interest rate stability to general depositors and borrowers through the transmission of the policy. “The interest rate corridor system is aimed at bringing ceiling and floor to a desired level,” Narayan Prasad Paudel, the spokesperson for the NRB, told Republica.
KALIKOT, Jan 24: With the works on opening the track of the Karnali Corridor Highway gearing up, hopes have risen that one of the remotest corners of the country – Humla district in the far northwest – would get connected to the national road network.
KATHMANDU, Aug 10: Nepal Rastra Bank (NRB) is introducing interest rates corridor system from Wednesday as part of its effort to control the interest rates volatility that has been grappling the banking and financial system.
KATHMANDU, June 20: The parliament’s Public Accounts Committee on April 22 had said it would end a controversy over procurement for Solu Corridor Transmission Line within a week but since then it has not held a single formal meeting on the issue.