Financial Institutional Operations in Nepal

Background of the Country Nepal is one of the least developed countries in the being having US$ 220.00 per capita income. The Nepalese economy is predominantly an agricultural economy. slightly 81 part of the population is engaged in the agriculture sector whereas about 86 percent of the population lives in the rural sector of the country. Agricultural sector contributes 40 percent to Gross Domestic Product (GDP) of the country. According to the National nutriment Standard Survey 1996, about 42 percent of the population were found to be living below poverty inventory but at the end of the Ninth Plan 2001, the soma has comedown to 38 percent. Nepal has been witnessing planned development efforts since the last four and a half decades. The Ninth Five Year Plan has on the nose completed in 2001. The objectives envisaged in most of the plans aim at reducing poverty. However, the intensity of poverty in the country calls for ample and genuine efforts. An Overview of Financial System The history of modern financial system of Nepal was begun in 1937 with the make-up of the Nepal Bank Ltd. (NBL) as the start commercial bank of Nepal with the joint ownership of government and popular public.

As mentioned above, Nepal Rastra Bank (NRB) was established after 19 old age since the establishment of the first commercial bank ( i.e.,NBL). After the establishment of NRB, Nepal witnessed a systematic development of the financial system. After the paying back of democracy in 1991, Nepal has clearly been following a liberalized economical policy and witnessing diversification in financial system. As a result, various banking and non-banking financial institutions have come into existence. As of mid-July 2002, on that point are 16 Commercial Banks, 16 Development Banks, 5 Regional Rural Development Banks, 54 Finance Companies, 34 Saving and Credit Cooperatives and 25 Non Governmental Organizations (NGOs) operating in the country. These financial institutions are under the regulation and... If you want to hail a full essay, order it on our website: Orderessay

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