Commercial banks fail to meet lending requirement to small and medium enterprises

KATHMANDU: Commercial banks failed to meet the lending requirement to small and medium enterprises in the last fiscal year.

As per Nepal Rastra Bank (NRB), commercial banks have disbursed such loans at a ratio of 10.1 percent over mandatory requirement of 11 percent. The lending to SMEs is less by 0.9 percentage points. SMEs received loans of Rs 327 billion in the last fiscal year.

As per monetary policy requirement, commercial banks are required to provide 11 percent loan of their total loan portfolio to SMEs until the end of 2020-21, 12 percent until the end of 2021-22, 14 percent and 15 percent until the end of the next two fiscal years.

However, the credit flow did not meet the target in the first year of implementation.

Meanwhile, NRB has said that banks should prioritize SMEs while disbursing loan and meet the mandatory requirement as stated in previous monetary policies.

Fiscal Nepal |
Friday August 20, 2021, 09:13:16 AM |


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