Cost of Funds

Cost of funds tells how expensive a bank's resources are. It is generally calculated as total interest expense on deposits and borrowings divided by average interest-bearing liabilities, annualised for interim periods.

The mix of deposits drives it. Current accounts carry little or no interest, saving accounts carry moderate rates, and fixed deposits and institutional deposits are the most expensive. A bank with a high share of low-cost CASA deposits has a lower cost of funds and can lend at more competitive rates.

In Nepal the cost of funds is the starting point of the base rate. The base rate is built from the pure cost of funds plus the cost of holding CRR and SLR, operating cost and a return element, and lending rates are then set as base rate plus a premium. When liquidity is tight and banks compete for deposits, the cost of funds rises and lending rates follow. NRB requires banks to disclose their cost of funds in quarterly reports along with the base rate and spread.

Cost of funds is one of the components of the base rate and is disclosed by banks in their quarterly reports.

कोषको लागतले बैंकको स्रोत कति महँगो छ भन्ने देखाउँछ। सामान्यतया निक्षेप र सापटीमा तिरेको कुल ब्याज खर्चलाई औसत ब्याज तिर्नुपर्ने दायित्वले भाग गरिन्छ।

चल्ती खातामा ब्याज न्यून वा शून्य, बचतमा मध्यम र मुद्दती तथा संस्थागत निक्षेपमा सबैभन्दा बढी ब्याज लाग्छ। सस्तो CASA निक्षेप बढी भएको बैंकको कोषको लागत कम हुन्छ।

नेपालमा आधार दर निर्धारणको सुरुवात बिन्दु कोषको लागत हो: शुद्ध कोषको लागतमा CRR/SLR को लागत, सञ्चालन खर्च र प्रतिफल जोडेर आधार दर बनाइन्छ। तरलता अभाव हुँदा कोषको लागत र कर्जाको ब्याजदर दुवै बढ्छन्।

कोषको लागत आधार दरको एक घटक हो र बैंकहरूले त्रैमासिक प्रतिवेदनमा यसलाई सार्वजनिक गर्छन्।