Interbank Interest Rate Falls Below 1 Percent

July 14, 2023 | Investopaper

The banking system in Nepal has witnessed a decrease in the interbank interest rate and CD ratio, indicating increased liquidity. According to the latest data from Nepal Rastra Bank, the interbank interest rate of banks has dropped below 1 percent. Specifically, on July 12, the interbank interest rate remained at 0.83 percent.

Similarly, the average CD ratio on July 12 decreased to 81.67 percent, compared to 82.11 percent of July 10. This decrease in the CD ratio is due to an additional infusion of Rs. 23 Arba into the banking system.

As of July 10, the total deposits of banks and financial institutions amounted to Rs. 57.13 Kharba. By July 12, this figure had increased to Rs. 57.36 Kharba. Additionally, the credit investment of banks  stood at Rs. 48.51 Kharba.