Trading Economy After All: Most Lendings From Commercial Banks Went to Wholesale and Retail

For any economy to be vibrant and prosperous, Banks and Financial Institutions (BFIs) play a crucial role. The primary objective of such institutions is to bridge the suppliers of capital to those who can utilize it productively.

With this objective in mind, banks collect deposits from consumers who have excess funds and disburse collected funds as loans to consumers who are seeking capital. Even during this operation, BFIs are obliged to stick with credit guidelines set by Nepal Rastra Bank (NRB). NRB, being the central, regulating bank in the country formulates guidelines to reduce regional economic imbalance and to ensure overall economic growth.

According to the latest information provided by the Nepal Rastra Bank (NRB), the following is the sector-wise breakdown of the amount of loan forwarded by each commercial bank in different sectors. This is the data reported till the first five months of the current fiscal year 2078/79. 

Commercial Banks have deployed Rs.40.84 Kharba on different sectors till Mangshir end FY 78/79. They have extended maximum loans under the wholesaler and Retailers sector i.e. Rs.8.44 Kharba by the end of Mangshir. The maximum concentration of credit is under Wholesaler and Retailers, Agriculture, Forestry & Beverage related Production sectors and Consumption Loans i.e. 20.68%, 17.71%, and 17.16 % respectively.