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Amid the news of three banks in the United States collapsing in the last one week, the Nepal Rastra Bank (NRB) on Sunday called Lender of Last Resort Policy 2023. The NRB has issued a Lender of Last Resort Policy whereby banks and financial institutions (BFIs) can take such a facility from the central bank paying an additional two percent penal rate to the prevailing bank rate. According to NRB Executive Director Prakash Kumar Shrestha, the policy has been amended to amend the regulation which was introduced in 2011. "The issuance of the policy has nothing to do with the collapse of the US banks," said Shrestha, "It's just a coincidence. The NRB board had already endorsed the policy in the last week of February." A lender of last resort facility is a financial instrument used by BFIs in case of extreme liquidity crisis when they are unable to return the deposits of the general public. Till now, only the then Vibor Development Bank has used it. The NRB, acting as a lender of last resort, extended a short-term loan of Rs 500m to the troubled Vibor Development Bank in 2011 and rescued it from an acute liquidity crunch under the Lender of Last Resort Policy 2011. The central bank provides the lender of last resort facility to BFIs, especially when they face a severe shortage of investment-grade liquidity. Earlier, the central bank used to provide such a facility at the prevailing bank rate. Now, NRB has said that a two percent penal rate will be added to the prevailing rate while providing a lender of last resort facility. According to the NRB, if BFIs are unable to manage the necessary liquidity through the interbank market, daily liquidity facilities, open market transactions, and standing liquidity facility (SLF), they can get such a facility from the central bank. The facility will be provided even if the BFIs are unable to meet their immediate obligations due to a lack of marketable assets. Similarly, even if the BFIs are unable to make payment of a large amount in deposits, they can ask the central bank for such a facility. Similarly, the NRB policy talks of providing this facility to BFIs if the economy and financial system face challenges due to systemic risk posed by a single bank, or if there is a decline in the trust of the general public towards the banking system, or if a bank is unable to pay immediate obligations due to natural disasters, and if it is unable to fulfill its immediate obligations due to national and international crisis and the bank is liquidated. Getting the lender of a last resort facility is not easy. The board of the problematic bank must submit an application to the central bank with reasons for seeking a lender of last resort as well as an action plan to revive the bank. The central bank will provide the facility only after it finds the bank can operate smoothly in the long run. Along with the application, a 6-month cash flow projection, statement of assets and liabilities of different periods, statement of deposits and other short-term liabilities, and an action plan for revival should also be submitted.

The price of gold has increased by Rs 1, 600 per tola in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 105, 700 per tola today. The gold was traded at Rs 104, 100  per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 105, 200 per tola. Similarly, the silver is being traded at Rs 1,300 per tola today.

The Nepal Stock Exchange (NEPSE) plunged by 24. 68 points to close at 1,951.21 points on Monday. Similarly, the sensitive index dropped by 5. 46 points to close at 386. 49 points. A total of 3,369,136 unit shares of 256 companies were traded for Rs 1. 16 billion. Meanwhile, Shuvam Power Limited was the top gainer today with its price surging by 9. 98 percent. Likewise, Khaptad Laghubitta Bittiya Sanstha Limited was the top loser with its price dropped by 7. 62 percent. At the end of the day, the total market capitalization stood at Rs 2. 82 trillion.

CG|Motocorp and CG|NXTGEN, the authorized distributor of Suzuki four-wheelers for Nepal, has launched Grand Vitara and Brezza in the Nepali market. "The Grand Vitara is a legendary vehicle from the Suzuki stable. The new avatar features Suzuki's signature crafted futurism design language, with distinct exterior and premium interiors," the company said in a press statement. According to the statement, the Grand Vitara's off-road capability is boosted by Suzuki All Grip Technology while offering segment-leading features. The SUV also features the fuel-efficient revolutionary Full Hybrid Powertrain. The new Brezza, on the other hand, is a new generation of one of the largest-selling SUVs in Nepal. The SUV is equipped with a bouquet of cutting-edge technologies along with next-gen comfort and convenience features. Taking a major leap forward, this sporty SUV offers a stylish and exciting new design, powerful performance, and advanced safety features. According to the company, the new Brezza is loaded with hi-tech features that come really handy when driving in the city and offroad. The company believes these two new vehicles will strengthen Suzuki's presence in the ready competitive SUV segment while offering the best in class features, safety, and technology. "SUV has seen high growth in Nepal, especially due to the different driving conditions we have here. The customers have shown a strong inclination towards an assertive design, a dominant road presence, and new-age technology. The new Grand Vitara and Brezza will be game changers with their many segment-first features, advanced technological offering, premium interiors, and strong presence," said Karan Chaudhary, Executive Director of CG|Motocorp. The company said the new Grand Vitara comes up with artfully designed exteriors and interiors, and revolutionary technology catering to the new-age customers’ needs. The SUV is equipped with Next-gen technologies such as colored heads-up display, 360 view camera with approaching object detection and dynamic reverse gridlines, a Smart Play Pro+ infotainment system, and a Qi-certified wireless charger with an LED indicator. It features a panoramic sunroof, an all-new full digital instrument cluster, and driver and co-driver ventilated seats. Built on the acclaimed Suzuki TECT platform, the Grand Vitara is secured with the Suzuki Safety Shield. It is equipped with six airbags (front, side and curtain), an electronic stability program with hill hold assist, 3-point ELR seat belts, and rear disc brake across all variants. Similarly, the new Brezza has modern and spacious interiors with dual-tone black and new rich brown interiors (dynamic honeycomb pattern) for a sporty and urban feel. The SUV has distinct interior ambient lighting for a sophisticated cabin experience, a wider instrument panel and wider rear seats for comfortable long drives. The new Brezza also boasts a colored heads-up display, 360 view camera with approaching object detection & dynamic reverse gridlines, and a 9-inch Smart Play Pro+ infotainment system. The SUV is also packed with safety features such as six airbags, an electronic stability program with hill hold assist, reverse parking sensors, and a high-speed alert system, among others. Pricing Details