Kathmandu, December 7, 2018 : A committee led by Shiva Raj Shrestha, the Deputy Governor of Nepal Rastra Bank has been formed by the Ministry of Finance (MoF) on December 6, 2018. The main objective of the committee is to study the challenging factors resulting the financial instability in Nepal such as fluctuations in the capital market and volatility in the bank interest rates.
The committee incorporates the chairman of the Securities Board of Nepal (SEBON), president of Nepal Bankers’ Association (NBA), a joint secretary of the Financial Sector Management and Corporation and Co-ordination Division of the Finance Ministry and representatives from Nepal Investors Forum.
In parallel, NBA has decided to remove the interest rate cap of 11 per cent on individual fixed deposit schemes on December 5 for luring more deposits to address the crunch of loanable funds in the banking sector. As a result, different banks has raised the interest rate on fixed deposits to up to 12.5 per cent.