Nepal Bankers’ Association expresses dissatisfaction over mid-term review of monetary policy; concludes review to be unfavorable for banks

After the publication of the mid-term review, the Nepal Bankers’ Association expressed their discontentment with some of the clause. The association concluded the review to be unfavorable for the banks.

The mid-term review of Monetary Policy 75/76 mentioned clause regarding the reduction in the change in process of calculation of the spread rate and amendment in the cost of services.

The central banks has used complicated methods to reduce the interest rate for industrial and commercial loans on request.

The central bank will decide the premium added to the base rate by commercial banks, who are providing loan facility to prioritized areas.

Similarly, NRB also amended the process of calculating the spread rate. Now the spread rate will be calculated on the basis of Weighted Average Interest Rate. This was done to reduce the interest on loan.