Impact of Lending Interest Rates, Deposit and Non-Performing Loan on Lending of Commercial Banks of Nepal

Abstract

Lending interest rate, deposit and non-performing loan shows kind of relationship with lending. The study analyse the impact of interest rate, deposit volume and nonperforming in Lending loan of commercial banks of Nepal. Loanable fund theory, the

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bills doctrine theory and credit creation theory are used in this study. In this study three independent variables have been taken they are lending interest rate, deposit volume and non-performing loan whereas lending is taken as dependent variable. Secondary data has been collected from annual reports and websites of five sample banks. The research design embraced in the study consists of descriptive, relational and casual research designs. Various tools used for data analysis were mean, median, standard deviation, ANOVA-test, correlation, regression etc. The finding of the study will help the policy maker to make strong policy regarding interest rate, deposit volume and non-performing loan on lending loan in context to Nepalese Commercial Banks. Key words: Lending interest rate, deposit, non-performing loan, lending