Liquidity crunch inciting crisis in the financial sector « Khabarhub
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Liquidity crunch inciting crisis in the financial sector

BFIs Rs. 750 billion targets difficult to meet target

04 May 2022  

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KATHMANDU: Banks have stated that they will not be able to meet the target set for investment in the coming fiscal year as the long-standing lack of liquidity (investable amount) in the banking and financial sector is likely to continue.

Stating that there are indications that the liquidity problem faced by the financial sector since the beginning of the current fiscal year will not be resolved in the coming fiscal year as well, the banks have stated that they will not be able to invest as much as they want in the next fiscal year.

Taking part in an interaction program organized in the capital on Wednesday, the bankers were skeptical about the possibility of drastic change in the economy.

In the first nine months of the current fiscal year, banks and financial institutions have disbursed loans worth Rs. 450 billion whereas they managed to get Rs 160 billion deposited.

To meet the target of 15 percent credit expansion for the coming fiscal year, the financial sector needs around Rs. 750 billion. However, the BFIs are undergoing a liquidity crunch.

Bankers say that a special initiative is needed from the state level for this.

Publish Date : 04 May 2022 20:24 PM

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