Will these banks be able to bring the spread rate down as per NRB directive?

Sep 06, 2018 Merolagani

In the last Monetary Policy, Nepal Rastra Bank has capped the spread rate (difference in borrowing and lending rates) of BFIs at 4.5 percent. However, as per the fourth quarter financial reports of the BFIs,  4 commercial banks has above 5 percent, whereas 15 has below 4.5 percent spread rate.

NRB, urging commercial banks to maintain their spread rate at 5 percent, has warned to take action against the BFIs failed to maintain the required spread rate.

Out of the total number of commercial banks, Agricultural development bank has the highest spread rate of 5.46 percent. Besides Agricultural Development Bank, NIC Asia, Standard Chartered and Nabil Bank has above 5 percent spread rate.

Previously, NRB has already directed BFIs to maintain the required spread rate before the end of the first quarter of the current FY.

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