BANK LENDING DETERMINANTS: EVIDENCE FROM NEPALESE COMMERCIAL BANKS

The purpose of the study to determine the commercial banks' lending in Nepal. The balance panel secondary data were used. The data has been analysis with help of Gretl statistics software version 1.9.4. The loan and advance taken as dependent variables whereas liquidity, investment portfolio, cash reserve ratio, bank size, gross domestic products growth rate and inflation rate were independent variables. The result shows that investment portfolio, cash reserve ratio and bank size have positive and significant effects on loan and advance. But the liquidity has negative and statically significant with loan and advance. The macroeconomic variables gross domestic products growth rate and inflation rate have not effective roles plays to determine the loan and advance. The concluded that liquidity, investment portfolio, cash reserve ratio and bank size were major determinants of loan and advance