Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has decided to provide a loan of up to one billion rupees to Karnali Bank to return the savings of its depositors.
Nepal Rastra Bank (NRB) has decided to provide this facility to Karnali Development Bank under the ‘Final Lender Facility’ ।
Through this facility, the bank is expected to repay the deposits of the savers and manage the necessary liquidity.TAG_OPEN_p_36
Savers have been agitating for not being able to withdraw their savings from the bank in recent times. The central bank has taken interventionist steps in view of the increasing pressure from savers and the liquidity crisis seen in the banks.
After this decision of the Rastra Bank, it is believed that the process of returning the money of the savers will be easy.TAG_OPEN_p_34 However, further managerial and structural measures are needed to improve the bank’s long-term financial condition.
The Nepal Rastra Bank (NRB) provides ‘Final Lender Facility’ to banks and financial institutions (BFIs) when they are in need to maintain the stability of the financial system and protect the public’s trust in deposits.TAG_OPEN_p_33 g.
