Monetary growth has remained at 18 per cent in April 2014 on point to point basis while most interest rates have come down to single digit. Despite high monetary liquidity, growth of credit to the private sector remains within targeted band.
Further, the degree of financialization is still low and total credit of banks and financial institutions stands at just 63 per cent of GDP. The financial sector strategy of the Nepal Rastra Bank has now been to consolidate the institutional expansion along with ensuring wider and better access to financial services.