The Unassuming Economist

From the IMF’s latest report on Nepal:

“Existing macroprudential measures, including the loan-to-value ratios on car loans and residential real estate, and limits on real estate sector exposure have helped to contain credit growth, but need to be tightened further. Staff welcomes the authorities’ stated intention to
adhere to the ceiling on the loan-to-deposit (LTD) ratio—so-called credit-to-core capital cum deposit (CCD) ratio.2 Several carve-outs have been introduced over time to provide more room for credit growth. These carve-outs, including the recent decision to allow funds obtained through interbank borrowing to count as deposits, should be phased out and the authorities should resist banks’ pressures for further effective relaxation of the CCD ratio and other macroprudential rules.”