Bankers Hope for Lending Growth as New Government Forms Despite Liquidity Surplus
Summary
Bankers in Nepal are hopeful that lending activity will increase following the formation of a new government despite current excess liquidity in the banking sector caused by economic slowdown.
Key Points
- Nepal's banking sector faces excess liquidity amid an economic slowdown.
- Loan disbursement slowed further impacted by the March 5 general election.
- Commercial banks issued Rs 15.73 billion in new loans between mid-February and mid-March.
- Bankers hope political stability from the new government will boost investor confidence and credit demand.
