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Commercial Banks Fail to Meet the Lending Criteria Set by Central Bank

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Commercial Banks Fail to Meet the Lending Criteria Set by Central Bank
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June 3: Commercial banks have failed to issue loan to the agriculture, energy and tourism sectors according to the criteria set by Nepal Rastra Bank. However, the commercial banks have provided loan to the deprived sector is more than the ceiling set by the central bank.

According to the criteria set by the central bank, out of the total loan issued by the commercial banks a minimum of 10 percent should be provided to the agriculture sector while the energy and tourism sectors should get 15 percent of the loan. Likewise, the central bank has set a ceiling of minimum 5 percent for the deprived sector lending.

However, the commercial banks have provided only 9 percent loan to the agriculture sector while the energy and tourism sectors have received 8.1 percent loan as of April 13, 2019. The loan provided to the deprived sector is 6 percent of the total loans of the commercial banks.

During the review period, commercial banks have provided a total of Rs 417.86 billion loan to the energy and tourism sectors.

The central bank has clearly stated that if any commercial bank cannot lend the amount to any sector as per the criteria set by it, then the banks should borrow from other banks and meet the requirement.

 

 

 

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