Kathmandu, January 25, 2022
There are signs of resurgence of liquidity in banks. It is seen that the liquidity problem, which has eased after 80 percent of the local level reserves can be calculated on deposits, will flare up again.
According to the Nepal Bankers Association, bank deposits have declined by Rs 13 billion in the last one week alone. As of 30 Poush, there was a deposit of Rs. 43.24 trillion in commercial banks. Deposits have dropped to Rs 4.311 trillion on Magh 7. During this period, commercial banks have increased loans by one billion rupees.
After ten years, the banks, which were facing a shortage of investments, were relieved to be able to calculate local level reserves as deposits.
As per the 26 Poush data, deposits in commercial banks had increased by Rs 58 billion in a
single year. Prior to that, banks were facing severe liquidity crunch due to high credit flow and low deposit mobilization.
At that time, when Rs 58 billion was added to the deposit, only Rs 9 billion was disbursed. But this situation did not last even for a week. It has been found that the deposits have been continuously declining since 26 Pus. If deposits continue to decline and credit expansion does not stop, banks will have to face a shortage of re-investable funds.
Chairman of the Bankers’ Association Anil Upadhyaya said that the deposit has decreased due to the closing time of the second quarter. Taxes are paid up to the second quarter in mid- Poush. He said that the deposit may have decreased as a lot of money was spent to pay taxes. But he expects it to be easier.
By Karuna Thapa
