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Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits
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4 min read

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits For the past two and a half years, Nepal’s banking and financial institutions have been unable to expand lending at a meaningful pace. Although deposits have continued to grow—primarily due to strong remittance inflows—the demand for loans has remained significantly weak. As a result, the credit market has slowed down, and banks are finding it increasingly difficult to utilize their available resources effectively. The slowdown in loan expansion has also reduced the overall fund utilization capacity of commercial banks. Over this period, more than NPR 1.1 trillion in excess liquidity has accumulated within the banking system. Of this amount, approximately NPR 844.85 billion has been parked at the Nepal Rastra Bank (NRB) through the Standing Deposit Facility (SDF) and various deposit collection instruments. This situation has emerged because deposits are growing at a solid pace while loan demand is stagnant. Remittance inflows have reached record highs, but borrowers are not seeking new credit, leaving banks with large amounts of idle and investable funds.

Dipesh Ghimire

·

23 Nov, 2025

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package
Financial Regulators

2 min read

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package Kathmandu — A comparative review of remuneration across Nepal’s three key financial regulatory bodies has revealed that employees of Nepal Rastra Bank (NRB) enjoy the highest salary and allowance benefits. The analysis shows a wide income gap between officers working at NRB, Nepal Insurance Authority (NIA), and the Securities Board of Nepal (SEBON).

Dipesh Ghimire

·

20 Nov, 2025

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Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits
Top

4 min read

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits For the past two and a half years, Nepal’s banking and financial institutions have been unable to expand lending at a meaningful pace. Although deposits have continued to grow—primarily due to strong remittance inflows—the demand for loans has remained significantly weak. As a result, the credit market has slowed down, and banks are finding it increasingly difficult to utilize their available resources effectively. The slowdown in loan expansion has also reduced the overall fund utilization capacity of commercial banks. Over this period, more than NPR 1.1 trillion in excess liquidity has accumulated within the banking system. Of this amount, approximately NPR 844.85 billion has been parked at the Nepal Rastra Bank (NRB) through the Standing Deposit Facility (SDF) and various deposit collection instruments. This situation has emerged because deposits are growing at a solid pace while loan demand is stagnant. Remittance inflows have reached record highs, but borrowers are not seeking new credit, leaving banks with large amounts of idle and investable funds.

Dipesh Ghimire

·

23 Nov, 2025

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package
Financial Regulators

2 min read

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package Kathmandu — A comparative review of remuneration across Nepal’s three key financial regulatory bodies has revealed that employees of Nepal Rastra Bank (NRB) enjoy the highest salary and allowance benefits. The analysis shows a wide income gap between officers working at NRB, Nepal Insurance Authority (NIA), and the Securities Board of Nepal (SEBON).

Dipesh Ghimire

·

20 Nov, 2025

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices
Top

3 min read

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices Kathmandu — While consumers across the country continue to feel the pinch of rising market prices—intensified further after the recent Gen-Z protests—Nepal Rastra Bank’s latest macroeconomic report tells a completely different story. According to the central bank, inflation has actually declined significantly compared to last year, contradicting widespread public perception. The Macroeconomic Update published on Sunday, covering data up to the end of Ashoj, shows that overall inflation has eased markedly during the months of Shrawan, Bhadra and Ashoj in the current fiscal year.

Dipesh Ghimire

·

20 Nov, 2025

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83
Top

2 min read

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83 Nepal has witnessed a sharp rise in the number of citizens opting for foreign employment in the first four months of the current fiscal year 2082/83. According to the Department of Foreign Employment (DoFE), a total of 273,810 individuals received labor permits between Shrawan 1 and the end of Kartik, indicating a significant rise compared to the same period last year. The surge reflects the continuing trend of out-migration driven by limited domestic employment opportunities and increasing demand for Nepali workers in international labor markets. The department’s data shows that 73,094 Nepalis received labor permits in the month of Kartik alone. Of these, 64,490 were men, while 8,604 were women. The month-on-month breakdown further highlights growing interest in foreign employment: 68,110 in Shrawan, 67,972 in Bhadra, 64,634 in Asoj, and 73,094 in Kartik. The upward trend observed in Kartik suggests renewed demand for labor in Gulf countries and Malaysia, which remain the major destinations for Nepali migrant workers.

Dipesh Ghimire

·

19 Nov, 2025

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges
Top

3 min read

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges Nepal has once again secured a ‘BB-’ sovereign credit rating for 2025 from Fitch Ratings, marking the second consecutive year the country has received the same assessment. Despite a series of political tensions, social challenges, climate-driven disasters, and a global economic slowdown, the unchanged rating indicates that Nepal’s overall macroeconomic position remains steady. The Ministry of Finance noted that the reaffirmation serves as an international validation of Nepal’s ability to meet its long-term financial obligations, even as the country faces structural economic constraints and periodic instability.

Dipesh Ghimire

·

19 Nov, 2025

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak
Top

2 min read

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak Nepal’s banking system has accumulated an excess loanable fund of over NPR 1.1 trillion by the end of the first four months of the current fiscal year. Despite expectations of strong credit growth following the announcement of an expansionary budget and monetary policy, credit flow has remained stagnant, causing liquidity to pile up rapidly across banks and financial institutions (BFIs).

Dipesh Ghimire

·

19 Nov, 2025

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market
Capital Market

2 min read

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market Kathmandu – Nepal’s banking sector has witnessed a sharp rise in share-backed (margin) lending during the first quarter of the current fiscal year 2024/25 (Shrawan–Ashwin 2082/83), indicating renewed investor activity and increasing reliance on credit to participate in the stock market. According to the latest data released by Nepal Rastra Bank (NRB) on Monday, banks issued Rs. 1.44 trillion in share-backed loans by the end of Ashwin, marking a significant 36.97 percent increase compared to the same period last year. In the previous fiscal year 2023/24 (2081/82), banks had issued Rs. 1.05 trillion in share-backed loans by Ashwin-end. The dramatic rise this year reflects a resurgence in market optimism, improved liquidity conditions in the banking system, and growing investor confidence, even as regulatory scrutiny on margin lending has tightened in recent years.

Dipesh Ghimire

·

18 Nov, 2025

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide
Top

3 min read

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide Nepal’s consumer price inflation shows clear regional differences, with the latest ecological belt–wise Consumer Price Index (CPI) indicating that non-food inflation is rising across the country, while food and beverage prices have fallen in most regions. According to the data for mid-October 2025 (Asoj 2082), the overall CPI reached 106.27, reflecting a 1.47 percent increase from the previous year and a 0.50 percent rise from the previous month. The modest increase signals that consumer inflation remains relatively stable, but the composition of price changes varies widely across Kathmandu Valley, the Terai, Hill, and Mountain regions.

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability
Top

3 min read

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability Nepal’s consumer price inflation has continued its downward trajectory, reaching its lowest level in four years as the nation experiences broad-based relief from rising living costs. According to the latest National Consumer Price Index (CPI) data, Nepal’s year-on-year inflation averaged 1.67 percent in fiscal year 2025/26 (mid-month series), a significant decline from 4.06 percent in 2024/25, 5.44 percent in 2023/24, and 7.74 percent in 2022/23. The steady drop in inflation reflects improving supply conditions, stable food markets, easing global commodity prices, and effective monetary tightening introduced earlier by Nepal Rastra Bank.

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region
Top

3 min read

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region Nepal’s consumer price inflation has continued to decline steadily over the past three years, with the latest data showing a significant moderation in price growth and a narrowing inflation gap with India. According to the Consumer Price Inflation (CPI) data for mid-2025/26, Nepal’s year-on-year inflation averaged 1.67 percent, compared to 1.29 percent in India during the same period. This marks a sharp improvement from previous years when Nepal’s inflation consistently outpaced India’s by a wide margin.

Dipesh Ghimire

·

18 Nov, 2025

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Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits
Top

4 min read

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits For the past two and a half years, Nepal’s banking and financial institutions have been unable to expand lending at a meaningful pace. Although deposits have continued to grow—primarily due to strong remittance inflows—the demand for loans has remained significantly weak. As a result, the credit market has slowed down, and banks are finding it increasingly difficult to utilize their available resources effectively. The slowdown in loan expansion has also reduced the overall fund utilization capacity of commercial banks. Over this period, more than NPR 1.1 trillion in excess liquidity has accumulated within the banking system. Of this amount, approximately NPR 844.85 billion has been parked at the Nepal Rastra Bank (NRB) through the Standing Deposit Facility (SDF) and various deposit collection instruments. This situation has emerged because deposits are growing at a solid pace while loan demand is stagnant. Remittance inflows have reached record highs, but borrowers are not seeking new credit, leaving banks with large amounts of idle and investable funds.

Dipesh Ghimire

·

23 Nov, 2025

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package
Financial Regulators

2 min read

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package Kathmandu — A comparative review of remuneration across Nepal’s three key financial regulatory bodies has revealed that employees of Nepal Rastra Bank (NRB) enjoy the highest salary and allowance benefits. The analysis shows a wide income gap between officers working at NRB, Nepal Insurance Authority (NIA), and the Securities Board of Nepal (SEBON).

Dipesh Ghimire

·

20 Nov, 2025

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices
Top

3 min read

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices Kathmandu — While consumers across the country continue to feel the pinch of rising market prices—intensified further after the recent Gen-Z protests—Nepal Rastra Bank’s latest macroeconomic report tells a completely different story. According to the central bank, inflation has actually declined significantly compared to last year, contradicting widespread public perception. The Macroeconomic Update published on Sunday, covering data up to the end of Ashoj, shows that overall inflation has eased markedly during the months of Shrawan, Bhadra and Ashoj in the current fiscal year.

Dipesh Ghimire

·

20 Nov, 2025

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83
Top

2 min read

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83 Nepal has witnessed a sharp rise in the number of citizens opting for foreign employment in the first four months of the current fiscal year 2082/83. According to the Department of Foreign Employment (DoFE), a total of 273,810 individuals received labor permits between Shrawan 1 and the end of Kartik, indicating a significant rise compared to the same period last year. The surge reflects the continuing trend of out-migration driven by limited domestic employment opportunities and increasing demand for Nepali workers in international labor markets. The department’s data shows that 73,094 Nepalis received labor permits in the month of Kartik alone. Of these, 64,490 were men, while 8,604 were women. The month-on-month breakdown further highlights growing interest in foreign employment: 68,110 in Shrawan, 67,972 in Bhadra, 64,634 in Asoj, and 73,094 in Kartik. The upward trend observed in Kartik suggests renewed demand for labor in Gulf countries and Malaysia, which remain the major destinations for Nepali migrant workers.

Dipesh Ghimire

·

19 Nov, 2025

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges
Top

3 min read

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges Nepal has once again secured a ‘BB-’ sovereign credit rating for 2025 from Fitch Ratings, marking the second consecutive year the country has received the same assessment. Despite a series of political tensions, social challenges, climate-driven disasters, and a global economic slowdown, the unchanged rating indicates that Nepal’s overall macroeconomic position remains steady. The Ministry of Finance noted that the reaffirmation serves as an international validation of Nepal’s ability to meet its long-term financial obligations, even as the country faces structural economic constraints and periodic instability.

Dipesh Ghimire

·

19 Nov, 2025

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak
Top

2 min read

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak Nepal’s banking system has accumulated an excess loanable fund of over NPR 1.1 trillion by the end of the first four months of the current fiscal year. Despite expectations of strong credit growth following the announcement of an expansionary budget and monetary policy, credit flow has remained stagnant, causing liquidity to pile up rapidly across banks and financial institutions (BFIs).

Dipesh Ghimire

·

19 Nov, 2025

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market
Capital Market

2 min read

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market Kathmandu – Nepal’s banking sector has witnessed a sharp rise in share-backed (margin) lending during the first quarter of the current fiscal year 2024/25 (Shrawan–Ashwin 2082/83), indicating renewed investor activity and increasing reliance on credit to participate in the stock market. According to the latest data released by Nepal Rastra Bank (NRB) on Monday, banks issued Rs. 1.44 trillion in share-backed loans by the end of Ashwin, marking a significant 36.97 percent increase compared to the same period last year. In the previous fiscal year 2023/24 (2081/82), banks had issued Rs. 1.05 trillion in share-backed loans by Ashwin-end. The dramatic rise this year reflects a resurgence in market optimism, improved liquidity conditions in the banking system, and growing investor confidence, even as regulatory scrutiny on margin lending has tightened in recent years.

Dipesh Ghimire

·

18 Nov, 2025

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide
Top

3 min read

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide Nepal’s consumer price inflation shows clear regional differences, with the latest ecological belt–wise Consumer Price Index (CPI) indicating that non-food inflation is rising across the country, while food and beverage prices have fallen in most regions. According to the data for mid-October 2025 (Asoj 2082), the overall CPI reached 106.27, reflecting a 1.47 percent increase from the previous year and a 0.50 percent rise from the previous month. The modest increase signals that consumer inflation remains relatively stable, but the composition of price changes varies widely across Kathmandu Valley, the Terai, Hill, and Mountain regions.

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability
Top

3 min read

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability Nepal’s consumer price inflation has continued its downward trajectory, reaching its lowest level in four years as the nation experiences broad-based relief from rising living costs. According to the latest National Consumer Price Index (CPI) data, Nepal’s year-on-year inflation averaged 1.67 percent in fiscal year 2025/26 (mid-month series), a significant decline from 4.06 percent in 2024/25, 5.44 percent in 2023/24, and 7.74 percent in 2022/23. The steady drop in inflation reflects improving supply conditions, stable food markets, easing global commodity prices, and effective monetary tightening introduced earlier by Nepal Rastra Bank.

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region
Top

3 min read

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region Nepal’s consumer price inflation has continued to decline steadily over the past three years, with the latest data showing a significant moderation in price growth and a narrowing inflation gap with India. According to the Consumer Price Inflation (CPI) data for mid-2025/26, Nepal’s year-on-year inflation averaged 1.67 percent, compared to 1.29 percent in India during the same period. This marks a sharp improvement from previous years when Nepal’s inflation consistently outpaced India’s by a wide margin.

Dipesh Ghimire

·

18 Nov, 2025

More Blogs

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Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits

Dipesh Ghimire

·

23 Nov, 2025

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits

Nepal’s Banking System Struggles With Weak Credit Demand Despite Rising Deposits For the past two and a half years, Nepal’s banking and financial institutions have been unable to expand lending at a meaningful pace. Although deposits have continued to grow—primarily due to strong remittance inflows—the demand for loans has remained significantly weak. As a result, the credit market has slowed down, and banks are finding it increasingly difficult to utilize their available resources effectively. The slowdown in loan expansion has also reduced the overall fund utilization capacity of commercial banks. Over this period, more than NPR 1.1 trillion in excess liquidity has accumulated within the banking system. Of this amount, approximately NPR 844.85 billion has been parked at the Nepal Rastra Bank (NRB) through the Standing Deposit Facility (SDF) and various deposit collection instruments. This situation has emerged because deposits are growing at a solid pace while loan demand is stagnant. Remittance inflows have reached record highs, but borrowers are not seeking new credit, leaving banks with large amounts of idle and investable funds.

Top

4 min read

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package

Dipesh Ghimire

·

20 Nov, 2025

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package

Among Three Financial Regulators, NRB Employees Receive the Highest Pay Package Kathmandu — A comparative review of remuneration across Nepal’s three key financial regulatory bodies has revealed that employees of Nepal Rastra Bank (NRB) enjoy the highest salary and allowance benefits. The analysis shows a wide income gap between officers working at NRB, Nepal Insurance Authority (NIA), and the Securities Board of Nepal (SEBON).

Financial Regulators

2 min read

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices

Dipesh Ghimire

·

20 Nov, 2025

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices

Nepal’s Inflation Falls Sharply Despite Market Complaints of Rising Prices Kathmandu — While consumers across the country continue to feel the pinch of rising market prices—intensified further after the recent Gen-Z protests—Nepal Rastra Bank’s latest macroeconomic report tells a completely different story. According to the central bank, inflation has actually declined significantly compared to last year, contradicting widespread public perception. The Macroeconomic Update published on Sunday, covering data up to the end of Ashoj, shows that overall inflation has eased markedly during the months of Shrawan, Bhadra and Ashoj in the current fiscal year.

Top

3 min read

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83

Dipesh Ghimire

·

19 Nov, 2025

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83

Foreign Employment Surges: Over 273,000 Nepalis Receive Labor Permits in the First Four Months of FY 2082/83 Nepal has witnessed a sharp rise in the number of citizens opting for foreign employment in the first four months of the current fiscal year 2082/83. According to the Department of Foreign Employment (DoFE), a total of 273,810 individuals received labor permits between Shrawan 1 and the end of Kartik, indicating a significant rise compared to the same period last year. The surge reflects the continuing trend of out-migration driven by limited domestic employment opportunities and increasing demand for Nepali workers in international labor markets. The department’s data shows that 73,094 Nepalis received labor permits in the month of Kartik alone. Of these, 64,490 were men, while 8,604 were women. The month-on-month breakdown further highlights growing interest in foreign employment: 68,110 in Shrawan, 67,972 in Bhadra, 64,634 in Asoj, and 73,094 in Kartik. The upward trend observed in Kartik suggests renewed demand for labor in Gulf countries and Malaysia, which remain the major destinations for Nepali migrant workers.

Top

2 min read

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges

Dipesh Ghimire

·

19 Nov, 2025

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges

Fitch Retains Nepal’s Sovereign Credit Rating at ‘BB-’, Signaling International Confidence Amid Domestic Challenges Nepal has once again secured a ‘BB-’ sovereign credit rating for 2025 from Fitch Ratings, marking the second consecutive year the country has received the same assessment. Despite a series of political tensions, social challenges, climate-driven disasters, and a global economic slowdown, the unchanged rating indicates that Nepal’s overall macroeconomic position remains steady. The Ministry of Finance noted that the reaffirmation serves as an international validation of Nepal’s ability to meet its long-term financial obligations, even as the country faces structural economic constraints and periodic instability.

Top

3 min read

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak

Dipesh Ghimire

·

19 Nov, 2025

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak

Liquidity Surplus in Banking System Crosses NPR 1.1 Trillion as Credit Demand Remains Weak Nepal’s banking system has accumulated an excess loanable fund of over NPR 1.1 trillion by the end of the first four months of the current fiscal year. Despite expectations of strong credit growth following the announcement of an expansionary budget and monetary policy, credit flow has remained stagnant, causing liquidity to pile up rapidly across banks and financial institutions (BFIs).

Top

2 min read

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market

Dipesh Ghimire

·

18 Nov, 2025

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market

Share-Backed Loans Surge Nearly 37 Percent in First Quarter, Reflecting Renewed Investor Activity in Capital Market Kathmandu – Nepal’s banking sector has witnessed a sharp rise in share-backed (margin) lending during the first quarter of the current fiscal year 2024/25 (Shrawan–Ashwin 2082/83), indicating renewed investor activity and increasing reliance on credit to participate in the stock market. According to the latest data released by Nepal Rastra Bank (NRB) on Monday, banks issued Rs. 1.44 trillion in share-backed loans by the end of Ashwin, marking a significant 36.97 percent increase compared to the same period last year. In the previous fiscal year 2023/24 (2081/82), banks had issued Rs. 1.05 trillion in share-backed loans by Ashwin-end. The dramatic rise this year reflects a resurgence in market optimism, improved liquidity conditions in the banking system, and growing investor confidence, even as regulatory scrutiny on margin lending has tightened in recent years.

Capital Market

2 min read

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide

Dipesh Ghimire

·

18 Nov, 2025

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide

Price Growth Varies Across Ecological Belts as Non-Food Inflation Rises but Food Prices Decline Nationwide Nepal’s consumer price inflation shows clear regional differences, with the latest ecological belt–wise Consumer Price Index (CPI) indicating that non-food inflation is rising across the country, while food and beverage prices have fallen in most regions. According to the data for mid-October 2025 (Asoj 2082), the overall CPI reached 106.27, reflecting a 1.47 percent increase from the previous year and a 0.50 percent rise from the previous month. The modest increase signals that consumer inflation remains relatively stable, but the composition of price changes varies widely across Kathmandu Valley, the Terai, Hill, and Mountain regions.

Top

3 min read

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability

Nepal’s Consumer Inflation Falls to Lowest Level in Four Years, Signaling Broad Price Stability Nepal’s consumer price inflation has continued its downward trajectory, reaching its lowest level in four years as the nation experiences broad-based relief from rising living costs. According to the latest National Consumer Price Index (CPI) data, Nepal’s year-on-year inflation averaged 1.67 percent in fiscal year 2025/26 (mid-month series), a significant decline from 4.06 percent in 2024/25, 5.44 percent in 2023/24, and 7.74 percent in 2022/23. The steady drop in inflation reflects improving supply conditions, stable food markets, easing global commodity prices, and effective monetary tightening introduced earlier by Nepal Rastra Bank.

Top

3 min read

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region

Dipesh Ghimire

·

18 Nov, 2025

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region

Nepal’s Inflation Falls Sharply as Gap with India Narrows; Price Stability Improves Across the Region Nepal’s consumer price inflation has continued to decline steadily over the past three years, with the latest data showing a significant moderation in price growth and a narrowing inflation gap with India. According to the Consumer Price Inflation (CPI) data for mid-2025/26, Nepal’s year-on-year inflation averaged 1.67 percent, compared to 1.29 percent in India during the same period. This marks a sharp improvement from previous years when Nepal’s inflation consistently outpaced India’s by a wide margin.

Top

3 min read