KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, has showed concerns over the increasing trend of commercial banks’ lending money to other commercial banks at an average rate of up to 6.4 percent recently, a report in The Himalayan Times has said.
Earlier, NRB was clueless with the commercial banks’ intention to go for inter-bank transaction while it is offering funds at far cheaper rates. Surprisingly, there are few takers of the funds provided by NRB.
On December 26 last year, NRB had issued a directive allowing banks and financial institutes to treat credit obtained through inter-bank window as deposit to meet the credit to core-capital-cum-deposit ratio.
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