Nepal's banks have more money than borrowers. That is not as good as it sounds
Deposits grew, lending stalled, and rates fell. Bankers blame weak demand; businesses blame the bankers.
For much of the recent period the banking system has carried excess liquidity: deposits rising faster than loans, and interbank rates falling to historic lows. (‘Current Macroeconomic and’ 2025)
In theory cheap money should set off a borrowing boom. In practice firms report that they see no demand worth borrowing for, and banks report that they see no firms worth lending to.
A confidence problem
Business coverage has tracked the standoff for months: construction slowed, imports fell, and the recovery in private investment that everyone expected kept not arriving. (The Himalayan Times 2025)
References
2025. Current Macroeconomic and Financial Situation of Nepal. Kathmandu: Nepal Rastra Bank. https://www.nrb.org.np/category/current-macroeconomic-situation/.
The Himalayan Times. 2025. “Business.”. https://thehimalayantimes.com/.
Cite this story
Dispatch Report (2025) ‘Nepal's banks have more money than borrowers. That is not as good as it sounds’, 6 November. Available at: https://thedispatchreport.com/article/nepals-banks-have-more-money-than-borrowers-that-is-not-as-good-as-it-sounds (Accessed: 5 October 2026).
0 comments
Log in to join the discussion.
Create an account