Himal Press 
Binod Chaudhary (File Photo)
KATHMANDU: Nepali Congress (NC) lawmaker and noted industrialist Binod Chaudhary has questioned why bank interest rates are not decreasing despite banks being flush with liquidity.
Speaking at the meeting of the Finance Committee of the House of Representatives on Tuesday, Chaudhary said there is a need to investigate why interest rates are not going down and why loan investments are not increasing.
“The deposit-to-loan ratio has now dropped to 83%. Despite this, why are banks not lending? Why are interest rates not coming down?” Chaudhary questioned.
He also stated that the central bank should establish a clear policy to address the situation. Likewise, he said there is a need to hold discussions with stakeholders to determine why bank lending is not increasing, despite the abundance of liquidity.
Chaudhary further expressed concern about the country’s economy based on the revenue collection figures. “It is alarming that only around Rs 900 billion has been mobilized so far, while our recurrent expenditure exceeds Rs 1,000 billion,” he added.
Stating that import was not picking up due to the restriction enforced by the government, Chaudhary said it is the responsibility of the government to make the economy vibrant.
