April 25, 2024, Thursday

As the deposits of the banks started to increase, there was a decline in the borrowings from the central bank

As the deposits of the banks started to increase, there was a decline in the borrowings from the central bank

As the deposit collection of the banks started to increase, the amount to be taken from the central bank has started to decrease continuously. According to the Central Bank, this amount which reached up to 1 trillion rupees daily has now fallen to around 7 billion rupees.

Along with the decrease in daily deposits, the total amount of deposits to be paid to the National Bank is also decreasing. According to Nepal Rastra Bank, as of November 22, banks and financial institutions have taken a total of 24 trillion 63 billion rupees through permanent liquidity facility.

Similarly, 68.91 billion rupees have been recovered through overnight repo. Banks and financial institutions have executed more than 27 billion transactions with Nepal Rastra Bank till November 22 of the current financial year.

Financial institutions have taken the loan through instruments such as permanent liquidity facility, overnight repo, repo, and outright purchase. Looking at the data of the last one week, the banks have taken permanent liquidity facilities only around 10 billion on most days.

According to the statistics of the Central Bank, such a sum which reached more than 2 trillion rupees has decreased to 80.64 billion rupees by Tuesday. According to the Central Bank, on November 22, banks have taken only 7 billion 19 million rupees of permanent liquidity facility.