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Why are deposits declining from banking system of Nepal despite rising interest rates?

fixed deposit

Why are deposits declining from banking system of Nepal despite rising interest rates?

KATHMANDU: Deposit collection has started declining from the banking system of Nepal, deepening the problems of lack of liquidity.

According to the statistics of Nepal Bankers’ Association, around Rs 34 million have declined from the commercial banks in the third week of October and November.

Though the interest rate of commercial banks has risen to 10.05 percent, the decline in the collection of deposits is likely to deepen the problems of lack of liquidity.

The interest rate of development banks and finance companies is higher than the commercial banks.

At present, the interest rate on fixed deposits of development banks is 10.25 percent while the finance companies is 10.35 percent.

Former banker Anil Raj Bhattarai said that the money might have g

Read the full story at english.nepalpress.com


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