According to mid-term evaluation report of the budget of the present fiscal year published by the Ministry of Finance (MoF), the reduction in banks´ liquid asset is because of lack of investment to run big projects and flight of large sum of deposits from Nepal to foreign countries as a result of unfavorable climate created by political instability in the country.[break]
Banks´ liquid asset declined by 10.6 percent by the end of Mangsir-end and fell to Rs. 191 billion and 20 million, it says. In the same period last year, their asset decreased by 9.7 percent.
The liquid asset reduced after commercial banks´ cash reserve in Nepal Rastra Bank and in foreign countries declined, advisor of MoF Dr. Keshav Acharya said.
According to him, the foreign cash reserve of commercial banks decreased by 9.6 percent in this period and in NRB by 39.8 percent.
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