Banks Possess Rs 46 Billion Excess Liquidity
May 8, 2020 | Investopaper
As a result of the Worldwide corona virus outbreak, the demand for the loans has declined significantly. According to Nepal Rastra Bank, liquidity in the bank has increased. Banks and financial institutions (BFIs) have more liquidity of Rs 45.78 billion than the mandatory cash reserves since April 23 [Baisakh 11].
During the nine months of FY 2076-77, the central bank had disbursed a total of Rs. 186.83 billion through repo and Rs. 73.06 billion through permanent liquidity facility. During this period, liquidity of Rs. 58 billion has been repeatedly mobilized. Such number is Rs 30 billion through deposit bidding and Rs 28 billion through reverse repo.
In the first nine months of FY 2076/77, the central bank has provided net liquidity of Rs. 305.86 billion by purchasing USD 2.67 billion from the foreign exchange market (commercial banks). Thus, Indian Rupees worth Rs. 350.09 billion has been purchased.
