KATHMANDU: Lately, commercial banks have started increasing credit lending.
Banks have increased credit lending to Rs 2.5 billion daily.
Banks had more liquidity as businesses could not grow due to the impact of the coronavirus. Credit lending has increased to Rs 16 billion after November 20.
Banks and financial institutions, which have been suffering from high liquidity in recent times, are now expanding their credit lending, which suggests that the economy is returning to normalcy.
Credit lending has also been on the rise since the business, which came to a standstill due to COVID-19 started operating.
Another major reason for the increase in credit lending is the rise in the stock market.
Shares worth Rs 9 billion have been traded daily this week. On one hand, the NEPSE index has risen and on the other hand, the banks have mobilized the stagnant capital.