Banking sector deposits rose by Rs 417.48 billion to Rs 7.68 trillion by mid-January, according to Nepal Rastra Bank. In contrast, private-sector credit increased by only Rs 197.47 billion, reaching Rs 5.69 trillion. Average lending rates fell to 7.12 percent in January, down from 8.69 percent a year earlier. Despite ample liquidity and lower interest rates, the Federation of Nepalese Chambers of Commerce and Industry attributes weak credit demand to political uncertainty and low investor confidence.
