NRB Liabilities Up 30.5% as Other Liabilities Reach Rs. 665 Billion

Nepal Rastra Bank’s (NRB) Central Bank Survey for August 2025 shows a sharp rise in the central bank’s overall liabilities, with the category of “Other Liabilities” climbing to Rs. 665.4 billion, a significant 30.5 percent year-on-year increase from Rs. 509.8 billion in August 2024. This growth highlights the rapid expansion of the central bank’s internal and contingent obligations amid increasing monetary operations and policy interventions.

The category of “Other Liabilities” typically includes NRB’s accumulated provisions, revaluation reserves, deferred accounts, and other obligations arising from its foreign exchange management and domestic operations. The steep rise indicates that the central bank has absorbed higher volumes of liquidity and foreign exchange transactions, reflecting its active intervention in stabilizing the market during a period of fluctuating external flows and high remittance inflows.

Experts suggest that such a sharp increase in liabilities reflects NRB’s expanding balance sheet — a result of larger foreign exchange reserves, higher capital and reserve accumulation, and growth in its monetary policy operations. However, they caution that rapid liability expansion could also mean future fiscal pressures, especially if these funds represent sterilization costs or unrealized exchange valuation adjustments.

The central bank’s balance sheet composition shows a growing divergence between foreign assets and domestic liabilities. While foreign assets surged by 33.3 percent to Rs. 2.65 trillion, total liabilities have risen at nearly the same pace, implying a broader liquidity management challenge for NRB. Analysts believe this underscores a shifting monetary landscape — one where financial stability and liquidity control now depend heavily on NRB’s balance sheet capacity and policy precision.