What is a Interbank interest rate in Nepal ?

The interest rate of inter-bank transactions has fallen below 2 percentage points. With the accumulation of investable funds in the banking system, the interest rate of inter-bank transactions has also decreased. Currently, this interest rate has fallen to the line of 1.94 percentage points. Currently, with the high growth of deposits in banks, this interest rate has started to decrease continuously. Currently, more than 5 billion investable funds are accumulated in the banking system.

Interest rates are also decreasing, deposits are increasing. However, due to lack of demand for loans, investment has not increased. A member of Nepal Bankers Association said that there is no demand for loans in the market even though economic activity is not increasing.

Interbank interest rates have also decreased as investable funds have accumulated in the banking system. On the other hand, the credit-deposit ratio (CD ratio) of banks and financial institutions has also started to decrease. Currently, this ratio has reached 81 percent. Banks and financial institutions are currently in a very comfortable situation for credit investment. Banks and financial institutions can provide loans with a maximum CD ratio of 90 percent.