Nepali banks have adopted a more cautious approach to collateral-based lending amid a sharp increase in non-banking assets (NBAs) and declining property values. New central bank rules require banks to attempt selling collateral at least three times before taking ownership. With NBAs reaching Rs 51.12 billion, banks are prioritizing loan recovery over collateral acquisition. Savings and credit cooperatives are also affected, with lending limits reduced to 50–60 percent of collateral value from the earlier 80 percent.
