NRB Tightens Lending Against Real Estate, Share & Imports
February 18, 2022 | Investopaper
Nepal Rastra Bank (NRB) has tightened the lending on real estate and share pledge. In its half-yearly review of the monetary policy for the current fiscal year, the central bank has decided to provide 100 percent margin to tighten unproductive sectors, share pledges and imports.
Similarly, NRB has decided to increase the lending rate on re-financing from five percent to seven percent. Likewise, the Standing Liquidity Facility (SLF) related to interest rate corridor has been fixed at 7 percent, policy repo rate at 5.5 percent and deposit collection rate at 4 percent. The central bank will also study the different types of loans disbursed by banks and financial institutions to differentiate the interest rate of loan to productive sector from the interest rate of loan to other sector.
In order to strengthen the internal and external sector balance, the central bank has emphasized on the flow of financial resources in the areas of productivity growth, job creation and entrepreneurship development.
