According to data from Nepal Rastra Bank (NRB), interest rates have decreased in the first seven months of the current fiscal year (2081/82).
Key highlights include:
- 91-Day Treasury Bills: The weighted average interest rate dropped to 2.86% in Magh 2081, down from 3.34% in Magh 2080.
- Interbank Transactions: The weighted average interbank interest rate also decreased to 3.00% from 3.04% in the same period last year.
- Base Rates:
- Commercial Banks: Fell to 6.46% in Magh 2081, compared to 9.06% in Magh 2080.
- Development Banks: Declined to 8.52% from 11.13%.
- Finance Companies: Dropped to 9.39% from 12.70%.
- Loan Interest Rates:
- Commercial Banks: Decreased to 8.55% from 11.08%.
- Development Banks: Fell to 9.90% from 12.85%.
- Finance Companies: Reduced to 10.88% from 13.93%.
Expansion of Financial Access
The number of NRB-licensed banks and financial institutions has reached 107 as of Magh 2081, including:
- 20 Commercial Banks
- 17 Development Banks
- 17 Finance Companies
- 52 Microfinance Institutions
- 1 Infrastructure Development Bank
Additionally, the number of branches increased from 11,530 in Ashad 2081 to 11,540 in Magh 2081, indicating a steady expansion of financial access across the country.
Key Takeaways
- The decline in interest rates reflects a more stable monetary policy and improved liquidity in the financial system.
- The increase in the number of financial institutions and branches highlights efforts to enhance financial inclusion and accessibility for all citizens.
Source: Nepal Rastra Bank (NRB)
