Banking industry in crisis

What is more worrisome is the unwillingness of policymakers to read the writing on the wall.

Addressing a public function last week, Nepal Rastra Bank Governor Maha Prasad Adhikari said the scarcity of loanable funds in the banking sector would more likely worsen than improve in the coming months. This is an ominous prediction from the chief of the country's monetary authority when the interest rate on commercial borrowing has crossed the business viability rule-of-thumb limit of 15 percent.