Cartelization of interest rates end, commercial banks to determine themselves

KATHMANDU, July 13: The interest rate determination process of commercial banks will be determined by the banks themselves. Till now, Nepal Bankers Association (NBA) was fixing the interest rate of banks. Now, banks are allowed to reduce interest rates based on open market competition.

Along with this, NBA's cartelization in interest rate determination has also come to an end. Until now, all the commercial banks had been implementing the fixing of interest rates of the commercial banks according to the agreement of the Chief Executive Officers present at the NBA meeting.