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Liquidity crisis past Vs present

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Member
Registered: Oct 2013
Posts: 4587
Looks like Gold deposit will be total flop due to bureaucracy with yuraj k mentality.

They are talking about taking gold jewelry, melt it and return it as the jewelry. m0ron bureaucrats, ask your wife if it is possible. intelligent wife! not the dumb ones.


Till there is negative bureaucrat like yuraj k in power, nepal's future is hopeless and we wont see 100000 NEPSE.

It has already been 4 month now and they have not disclosed the draft. I would have drafted the rules with in one day, one month for discussion and another one day to finalize the draft. Total 32 days.










There is better than gold deposit to solve liquidity problem:

Share deposit in fixed deposit in bfis (land deposit):

1: This will solve long term liquidity crisis.

2: We have been talking about giving incentives to long term investors, share deposit promotes long term investment.

3: In the history of NEPSE, long term investors have been fooled and victimized many times, and share deposit will give them incentive. More than 95% investors are long term investors.

4: This will help to educate public that share investment is investment and wealth. Till now, Nepali culture is investing in land and gold. Gold is bad for liquidity and balance of payment.

5: Govt wants to issue infrastructure shares etc. This will help to generate investment.

6: Make economy vibrant.






How to do it?


1: More than 80% of the listed companies are qualified.

2: 90% market value should be considered.

3: Fixed deposit period- 3 month and above.

4: Interest- 3.5% for more than 3 year , .5% for more than 3 month and 1.5% for more than 1 year.

5: Banks should be able to revaluation of value of deposit and depositor should be able to reevaluate in every 6 month. .... .1% charge for revaluation by share holder.

6: If needed to release before maturity, 2% penalty.

7: .5% charge for swapping.



I can start this product with in 32 days.



I know, our bureaucrats and yuraj k and politicians wont do it now, but do it after india starts this.




Yuraj k type will never let Nepal become better than India.
Member
Registered: Oct 2013
Posts: 4587
Liquidity crisis,

One of main reasons that leads to liquidity crisis if Borrower cant make enough profit and unable to pay interest and principle.







What is bank????
https://forum.sharesansar.com/topic.php?id=6227
Member
Registered: Oct 2013
Posts: 4587
Hope monitory policy would solve liquidity crisis using Gold Deposit.

There could be more than 20 kharab worth of gold jewelry in cities.

If 25% are deposited, it would be 500 billion, about 20% deposit.


Interest rate should be 1-2%.

It should be calculated in CCD ratio.

NRB should give loan against the gold deposit.

BFIs should use that loan to lend to manufacturing industries and hydro @ 5-6% interest.
Member
Registered: Oct 2013
Posts: 4587
आरबिआइले ल्याएको 'टुल' प्रयोग गर्दा यसरी हुनसक्छ नेपाली बैंकको तरलता समस्या समाधान


बैंकहरुले आफ्नो डलर फण्डलाई आरबिआईमा 'पार्क' गर्ने र तीन वर्षपछि आरबिआईसँग त्यो फण्ड फिर्ता लिने उपाय अवलम्बन गर्न लागिएको हो|


Months back, I advised 8 classe Oli and NRB and sarbagyani yuraj k to give loan to BFIs against their foreign currency at 0% interest.

Which would have almost solved currency conversion risk.

But no, they did not listen to me. Now India is about to do very much similar.

If idiots in Nepal had done it when I advised them, they could have said, now India is copying US.


Nepal is kuwa for educated fools and India is the world. I am sure, they will copy indian in this regard too.


sati ko sarap.



Just wait, so called expert in Nepal and sarbagyani in social media will praise Indian move. Which I advised many many months ago.


sati ko sarap.


ke garna. I could have easily turned Nepal into one of the richest. But I am no 8 classe so I am no leader. :roll:
Member
Registered: Oct 2013
Posts: 4587
अर्थमन्त्री पनि बिग मर्जरकै पक्षमा: बैंकको संख्या १०/१२ मा झार्ने गभर्नरको सपना अब पूरा होला ?

* Forced merger:
- Top 8 Bfis whose interest on loan is highest.
- Bfis whose EPS is below 20
- BFis whose capital to deposit ratio is below 10 times.
- Bfis whose CCD ratio is above 78.
- Three govt controlled banks.


एसबिआइ र एभरेष्टलाई केन्द्रीय बैंकले सोध्यो- भारतबाट पैसा ल्याउँछु भनेको के भयो?

Its easy, governor or finance minister should go to China. Ask to buy yuan bond issued by NRB or BFIs amounting to 100 billion NC.

(NRB's bond money should be lended to BFIs with 1% premium.)

Then India will be begging to take their money. So will US and probably Japan too.

You can ask Qatar too.
Member
Registered: Oct 2013
Posts: 4587
स्प्रेडको नयाँ गणनाविधिले बैंकको आम्दानी ३२% ले घट्ने, समीक्षा गर्न बैंकर्स संघले बैठक बोलायो

What should BFIs move?

- First of all, directors of BFIs should fire those pakhe CEOs who went around saying Interest rate wont fall for 4/5 year, those CEOs who recommended to increase interest. There are 4/5 of those CEOs.

- Until interest rate crisis is over, directors should reduce salary of CEOs to 1 lakh per month and no other benefits.

Banks profits have been attacked every time CEOs charge high interest. Its common sense, when you do too much, there will always be kranti.

BFIs in Nepal make least profit among banks in the entire world. In the world, Banks make 200/300 EPS while in Nepal they make 27 EPS.

Even new company like shivam cement which has no any good will in the market makes 30 eps. And banks, which is the back bone of any economy makes 27 EPS. That's not healthy.


Now, the most, if govt or NRB does not reverse their decision on attack on income of BFIs which has always been the lowest in the world, add another demand- reduction of tax, teach them lesson what BFI means.

Teach those pakhe politician and bureaucrats, there is a reason, Banks are called main back bone of modern economy.

How to do that, tell borrowers not to pay interest, then cross NPL over 25 and crash the whole system. I am sure, CIA, RAW will fully support you.


All pakhes in media as well as social media as well as pakhe so called economic expert should know the importance and power of Bank in a society.

Teach commie/socialist a life/economic/political lesson.
Member
Registered: Oct 2013
Posts: 4587
Intelligent, professional, experienced strategist, policy maker would target base rate, but in Nepal pakhe strategist, policy maker has always been targeting spread rate.

this is sati ko sarap




- Bfis in Nepal make least profit in the world (probably 10/20% of world average)and still, their profit has been targeted frequently and khate in media, social media drop ral and attack their profit.

- BFIs in Nepal follows rule of Nepal the max among all industry and still they have been targeted frequently.

- Bfis in Nepal pays highest tax in terms of no as well as percentage and still they are being targeted frequently.



Idiot industrialist, you too invest in industry for profit. dont you crook know basics that you should not attack other's profit making. why dont govt fix spread rate of industries too to 4.5%? but dont, if you attack profit of business, Nepal happens. No body will invest here. only criminals invest in nepal who wont follow law and contribute nothing to the country.

By the way, what is their spread rate- 100%, 200%, 500%?????


What is the spread rate of passport- 5000%, 100000%??? govt of Nepal is the biggest criminal in Nepal.


What is the spread rate of NOC? 15%, 25%???????

Why is Unilever's product so expensive? what is the spread rate- 1000%,10000%????








whose fault is the reason behind attack on profit of BFIs for years????
-first fault is pakhe policy maker like yuraj k and nepal of nrb

-second, criminal pakhe big promoters of BFIs who hired incompetent CEO.

-third, pakhe CEO, who dont know basics- if you do too much, there will be kranti and in banking sector, during kranti its always profit of bfis that is hit.




I believe in free market, but there is always limitations. My views is, CEOs salary should be determined by the company, not govt.

But who gives a dam when one is suffering. Why should CEOs make crores while every body is suffering. Its time NRB should fix salary of CEO of banks to 10 lakh/year and no benefit.


Who gives a damn about free market? right.


Because of sati ko sarap, all sector in Nepal is ran by pakhe.
Member
Registered: Oct 2013
Posts: 4587
Bfis profit in Nepal could be the lowest in the whole world.

And still, they keep on complaining about their profit being high cause those retards hear billion when they hear profit amount. Those savages dont understand what EPS is.

I believe those pakhes have not heard about profit of NTC, Ncell, Unilever.


And there is another group of pakhes running BFIs, their CEOs and directors think, weather they charge 7% interest or 15% interest, income of BFIs wont be affected since, they could only charge 4.5%.

But those morons dont understand is, when they charge 15%, NPL will increase and which could lead to collapse of Banking sector and the whole economy.


And there is another threat when they charge 15%, there will be revolt from borrower.

And every time there is revolt from borrower, either NRB or govt attack profit of BFIs instead of trying to decrease interest rate.

In the past, NRB introduced spread rate of 5%. And still interest rate did not fall, so not they have reduced the spread rate to 4.5%.

Now again, idiot sarbagyani yuraj k is talking about eradicating service charges.

Why doesnot sarbagyani just dissolve BFIs and tell institutional depositors to give loan directly. And individuals should do the same.


Commie thinks, you should not expect profit from business. If you want to make profit, you should join politics or bureaucracy or become CIAA officials. :roll:



All the attacks on profit of BFIs----- which makes too little profit and the least profit in the entire world- is due to pakhe CEOs. Same idiot CEOs who goes around telling interest rate wont fall for 4/5 year, dont expect interest rate to fall for another 5/6 month.


Now will share holders of BFIs fire those pakha CEO??????????? Their incompetency in determining right interest rate is the reason, BFIs have been attacked from all sector. And most of the time it's profit is being attacked. Let me repeat, BFIs in Nepal make the least profit in the entire world.







For pakhas running system, there is another advise from real sarba gyani ''''I''''' to bring down interest:
- Let fixed deposit contract to be cancel by paying 1% penalty.


Company like NTC, insurance companies are suppose to make profit by selling service, not from FD interest.

Reduce their FD interest to 2%. May be then, they will start to reinvest their profit in real business, shares (share is where, in civilized world, insurance/pension fund/NTC like invest) instead of depositing in FD. Remember, only those can invest in business aka take risk which are making good profit. And NTC, Ncell, insurance are making profit. If they dont re invest their profit in business or shares when who will? will those who make 50k per month take risk in new business?????? No.......... but pakhas policy maker dont understand this psychology of business/investment.

So let think tank make policy.



Pakhas, dont attack profit of BFIs. Their profit is very low and lowest in the world. Send those BFIs who are charging high interest into forced merger, make CEOs of those companies disqualified to run BFIs for life.

NRB should fix interest rates. Policy should be increasing profit of BFIs to build Nepal and make them healthy. Not destroying them.






---------------------------------
NRB should fix max interest:

Saving a/c: 5% max
FD for institution: 5.5% max
FD for public: 6.5%
FD for elderly (male above 55 and female above 50):7%

Interest on loan:
For bank: 10% max
For dev: 11% max
For finance: 12% max


Min interest rate on deposit: 2.5%
Member
Registered: Oct 2013
Posts: 4587
India's top business groups on Thursday urged the central bank to cut its benchmark interest rate by at least half a percentage point and lower the cash reserve ratio it imposes on banks to stimulate an economy that is showing signs of weakness.

--
India has more than 7% economic growth and they are worried about slow down.

In Nepal every thing is Ok. :mrgreen:
Member
Registered: Jun 2018
Posts: 66
THE RISING SUN jee ko perfect kura....most of the countries will be willing to invest/deposit money in our country in terms of interest rate or growing economy. But we are neighbour to india and only marwadi mofo are allowed. Soon voices will rise to respect nazis and kill jewes.
Member
Registered: Oct 2013
Posts: 4587
Why dont Oli ask China to deposit 150 billion in Nepali bank?????? Qatar did same in Pakistan or Turkey.

After we approach China , India and US will come forward to deposit too.

Nepal can ask Japan and Korea too. And Qatar too.
Member
Registered: Mar 2018
Posts: 506
अर्थतन्त्रको मागलाई पूरा गर्न भद्र सहमति गर्नुपर्यो, एकल अंकमा झार्नुपर्छ
Yes man that's true but it should happen naturally not by CURTAILING, otherwise many of us will divert our fund
that is what you ve to see. Many people close to me ve now taken investment in NEIGHBOUR COUNTRY CAPITAL MARKET which is more tech friendly and lucrative. If this scenario continues many of us are also induced to do so.
Member
Registered: Oct 2013
Posts: 4587
Elaborated cause and prolonged liquidity crisis:

1: Unspent cash in Govt coffin
2: CCD ratio
3: Forced loan for so called productive sector.

I want to elaborate the 3rd one, since I have been talking about 1 and 2 for a long time now.


When liquidity crisis started, when every body including NRB, so called expert, politician, wanna be expert in social media all blamed BFIs for liquidity crisis, I blamed unspent cash in govt coffin. And some time later I added CCD ratio.

They were blaming bfis giving 5/10 billion more loan than they should, l went against the whole country and said its cause cash outside the system- govt coffin and CCD ratio.

Last year or so, many have began to blame 1 and lately some are adding 2 too. So my job is done here regarding 1 and 2.

Now during last few days, I have added third most reason.

Let me elaborate it.

Let me explain the easier one first.

If bfis had given share loan first then other priority sector then, this happens:
- give 100 share loan. Then immediately would have returned 100 back to bfis.
- Then give 80 to hydro then 60 would have returned and 20 would have left Nepal.
- Then give 48 to hydro, then 36 would have returned and 12 would have left nepal.
- then give 28 to hotel/cement again, then 14 would have returned and 14 would have left nepal.
- Then give 11 to agri loan. And 9 would have returned and 2 would have left nepal.
- then give 7 to industry. and 2 would have returned back to bfis and 5 would have left nepal.
- then give that 1 to retail loan.

Here, total liquidity created would have been: 100+ 80+48+28+11+7+1=275
In this scenario, Share would have govt 100, remember, share market capitalization is half of GDP and both SMC and GDP are undervalued and very small.
Hydro would have govt- 128
Hotel/cement- 28
Agri- 11
Industry- 7
Retail- 1
Here all gets healthy required capital.


But due to so called priority sector, this happens:
- give Hydro 100, 75 would have returned, 25 would have left nepal.
- give hydro 60, 45 would have returned, 15 would have left
- give hotel/cement/industry 36, 16 would have returned and 20 would have left
- Give 12 to agri, 9 would return and 3 left
- give 7 retail, 2 would return and 5 left
- give 1 to share

Here total liquidity had been created= 100+60+36+12+7+1= 216
Here, Hydro would get 160, hotel/cement/industry would get 36, agri 12, retail 7 and share 1.
Here, hydro gets too much capital, and share very low. And share price falls. And local instead of investing in hydro, they buy alcohol. Public dont want to invest in share and instead spends on luxury.

So difference would be, 275-216= 59 , 20%. Bfis loose 20% business so they push loan with money they cant loan.



But that's not the worst.

Here is the hard part: hard to understand if you are not a really good economist.


Remember, current dactor governor, he is not good in banking or economics or money. There is a saying in Nepal "duplicate sadu use more ashes".

Since, he does not understand fiscal policy, and since no one in NRB understands fiscal policy, When during his first fiscal policy, he increased requirement for priority sector loan in BFIs' loan. And if I remember, from Next year, liquidity crisis started. And Next year, due to liquidity crisis, he tightened share loan, personal loan and increased requirement for priority sector loan again. He kept on increasing every year and liquidity crisis only got worst.

I explained above how so called priority sector loan is the third biggest reason our liquidity crisis got worsen.

Wanna be economic expert in social media all talks about giving priority to so called productive sector while giving loan. When going gets tough, tough gets going.


Now let me talk about the real danger created by micro management of Money by NRB, sarba gani yuraj k's fixing of high priority sector loan. They have forced BFIs to give a big big portion of loan to so called productive sector.

In economics, pushing hard something always leads to crisis. I have been advising not to force banks to give too much loan to priority sector if there is no healthy demand. So reduce percentage of such loan.
Or at least, instead of telling BFIs to give 40% loan to priority sector, tell bfis to separate 40% loan to priority sector. If there is good demand then banks can give, if not hold that cash. Which would help in maintaining CCD ratio too.
I dont even remember is that priority sector loan is 40 or 30, they keep in increasing every year.

Here is an example, the devil created by so called force full priority sector loan. """""""""""""HYDRO-POWER"""""""". We all know, lately a lot of latest hydro in development are in bad condition. Its cause bfis are forced to give hydro loan to who ever demands hydro loan. Cause of the priority sector loan.

This is what happens when you make force in economics. In US too, when BFIs pushed for housing loan, There was housing crash in 2008. And bill clinton pushed for that loan.

In Nepal, NRB, sarba gyani yuraj k is pushing priority sector loan, and I can see potential crash in hydro sector, probably cement industry too.


So reduce percentage of priority sector loan and change policy to, BFIs should hold certain percentage of cash to priority sector loan. They dont have to give it if they dont find right candidate.



Top three reasons behind liquidity crisis:

1: Unspent cash in Govt coffin
2: CCD ratio
3: Forced loan for so called productive sector.
Member
Registered: Oct 2013
Posts: 4587
तोकिएको पूँजी नपुर्याउने, पाँच बर्षदेखि घाटामा रहेको, राष्ट्र बैंकको निर्देशन उल्लङघन गर्ने र जोखिम ब्यहोर्ने कोष कायम गर्न नसक्ने संस्थालाई फोर्सफुल मर्जरमा लगिने भएको छ|


Instead of '5 year in loss', NRB should forcefully merge or acquire those BFIs whose EPS is below 20.

Actually those BFIs whose EPS is below 75 cant contribute significantly to society or economy.
Member
Registered: Oct 2013
Posts: 4587
How to solve liquidity crisis???

- I had been saying, If BFIs/NRB/idiot yuraj k should give share loan of 10 of billions and that loan would have immediately returned back to BFIs which would have deceased pressure on BFIs to increase business and reduce liquidity crisis.


Now, this is my same finding with larger explanation:
When liquidity crisis was increasing, NRB tightened loan policy by reducing loan to products like share loan, personal loan and made BFIs focused on so called priority sector or so called productive sector.

So, when even BFIs had money, that money went to hydro, hotel, big industry like cement and BFIs did not give loan to share loan.

So what happened was, those loan which went to hydro, hotel, cement industry--- most of the money left the country which hit liquidity crisis even more.

If BFIs had give their money first to share loan, personal loan, that money would have returned back to their account immediately and if that deposit, if they had given to so called priority sector, our liquidity crisis would have been over.

When going gets tough, tough gets going.

NRB, instead of focusing on loan to that product which would have immediately brought back cash into BFIs, NRB focused on those product, so called productive sector, which sent money outside Nepal... Liquidity crisis prolonged.


That the economy, stupid!


That is why I been saying, idiots should not make policy.
Member
Registered: Oct 2013
Posts: 4587
UAE to deposit $3 billion in Pakistan's central bank to help the country's economy


This his how you build foreign policy.

Nepal's foreign Policy 🤢


But worry, Not, Share market will solve liquidity crisis-

1: after NEPSE is open for outsider- since after NEPSE reach normal height, return will be just above interest rate Nepal pay for foreign loan which is very small.

Which means, foreign investors will take back tiny fraction profit compared to NCell or Uniliver so wont be a problem.

I dont understand, FDI policy should be opening up market for those company which brings in foreign currency as revenue or helps Nepal reduce import or high tech company.

Why they opened up market for Ncell????


2: One of the reasons there is liquidity crisis is cause BFIs dont have enough business. If they give 100 billion more margin loan, BFIs will give loan and that money will immediately return back to BFIs so that returned can be again given to alu farmer.

But 100 billion is impossible. But possible if govt gives confidence and promotes margin loan.
Member
Registered: Oct 2013
Posts: 4587
ऋणको ब्याज नियन्त्रण गर्न बचतकै ब्याजमा क्याप लगाउने तयारी, १२% मा ब्याज झारिने


this liquidity crisis has become hard nut to crack for incompetent bureaucrats. ... accept me as your bou, i shall solve it within 24hr.
Member
Registered: Mar 2016
Posts: 11
Once I click share-sansar to see century bank offering 13 % on Fixed deposit, I took long breathe. Green Colour cant sustain for sure. Wait will be long......
Member
Registered: Mar 2018
Posts: 506
most of the small and medium class commercial banks are providing 13-13.5% interest in deposit. This will definitely increase there cost of fund and just imagine the lending interest rate????? Ultimately its going to hit the share loanee at the end of poush-We have to get prepared for the upcoming harsh condition.
Member
Registered: Oct 2013
Posts: 4587
परिसंघको प्रश्न: जीडीपीको ३५ प्रतिशत पैसा निष्क्रिय राखेर देश कसरी बन्छ?

If they had read my post, they could have said, what they said above, two years ago.

But I dont think, its 35%, probably 15-25%.








बैंकर्स संघका अध्यक्ष भन्छन्-'२-३ दिनमै भद्र सहमति ब्यूँतिनसक्छ |'
- Bring down institutional FD rate to 6.5%.

NRB should start new rule: Institution should not put more than 4% of their cash reserve in one BFI. It should include all pension funds, mutual funds, insurances, and all those corporation which has more than 25 crore cash.
« Last edit by The Rising Sun on Fri Dec 07, 2018 9:03 pm. »
Member
Registered: Oct 2013
Posts: 4587
How to tackle FD interest rate crisis?

-Make new rule: Pension funds, Insurance and all business with more than 1 arab cash can deposit max of 4% of their cash in One BFI.

One more rule to deal with FD interest rate crisis.

This way, if NICasia give 9% and others offer 7%, would be fine.
Member
Registered: Mar 2018
Posts: 506
नेपाल राष्ट्र बैंकबाट प्राप्त विवरण अनुसार २५ मध्ये १६ बैंकको निक्षेप असार मसान्तको तुलनामा साउन १५ मा घटेको देखिन्छ।
Again showing early symptoms of chronic economic disease.
http://www.bizmandu.com/content/20180821130350.html
Member
Registered: Oct 2013
Posts: 4587
Member
Registered: Oct 2013
Posts: 4587
सरकारी 'ब्याकअप' मा बैंकर्स संघले फेरी गर्यो ब्याज बढ्न नदिने भद्र सहमति, बचत ७%, मुद्दति ११%

सहमति अनुसार, संस्थागत निक्षेपकर्ताले अब साढे १० प्रतिशत मात्र ब्याज पाउने छन्। सर्वसाधारण निक्षेपकर्तालाई बढिमा ११ प्रतिशत ब्याज दिइने छ। यसअघिको सहमतिमा संस्थागतलाई ११.१५ प्रतिशतसम्म दिन पाइने थियो।

संघले ब्याज दरलाई अझ तल झार्नका लागि बचतको सीमा पनि घटाएको छ। पुरानो सहमति अनुसार ८ प्रतिशतसम्म बचतमा ब्याज दिन पाइन्थ्यो। बिहीबारको निर्णय अनुसार अब बचतमा अधिकतम ७ प्रतिशत मात्र ब्याज दिने सहमति भएको छ।

अब बैंकहरुले सबै ब्याजको भुक्तानी त्रैमासिक रुपमा मात्र गर्ने भएका छन्।

ऋणको ब्याज दरमा पनि अंकुस लगाइएको छ।


Why dont NRB fix max and min interest? There are <APE expert in social media supporting free market who expect freebies from our tax money.

Loan int: 7-12 (12 for finance, 11.5 for dev bank, 11 for bank) (dev and finance should get 3% concession in CCD ratio)

Deposit int: 3-8
Member
Registered: Mar 2018
Posts: 506
बैशाख लागेसँगै घट्यो घरजग्गा कारोबार, व्यवसायीहरु नयाँ बिकल्पको खोजीमा
WATER(LIQUID) will find its own way - REAL STATE to STOCK and viceversa.

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