The central bank has adopted flexible policy for real estate and hire purchase loans while has loosen its grip for various loan investment.
“the debt service to gross income ratio for real estate purchase has been increased to 70 percent from previous 50 percent based on the tax clearance document” said the review.
Similarly, the risk weighted for hire purchase type of loan issued by BFIs has been decreased to 100 percent from previous 125 percent.
Moreover, the bank has said to bring more tools to facilitate improving capital fund of banks and financial institutions.
Below is the full script of third quarter review of Monetary Policy published by NRB.
