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Banks in Nepal
Commercial banks plays vital roles to collect
money in the state. Generally, commercial banks are required by the central
bank to earmark a portion of their loan portfolio to priority lending for
agriculture, cottage industry, services etc., which includes 0.25% to 3% to
the deprived sector (poor population). Under this obligation, commercial banks
can lend directly to individuals or self-help groups, charging a 6-7% interest
rate, or provide wholesale funds or equity to microfinance providers serving
the poor in Nepal.
Two thirds of the priority and deprived sector
lending and investment are provided by the two public commercial banks, Nepal
Bank Limited and Rastriya Banijya Bank. Until recently the priority lending
was set at 12% of the loan portfolio. It is now being phased out, ending
completely in 2008, while the 3% deprived sector requirement will stay in
place, and therefore loan and investment in microfinance with it. As of mid
July 2003, Rs.22,605 million were affected to the priority sector, while Rs.
3,563 million allocated to deprived sector lending, from which 132.6 million
was in the form of equity. Under this requirement, investments made by
commercial banks in the Rural Microfinance Development Center, an apex
organization providing wholesale fund to microfinance, can be seen as a new
link between the formal finance sector and microfinance.
Followings links provide Nepal's commercial
banks, central banks and other financial institutions:
Nepal
Rastra Bank -
Nepal Central Bank
World Bank in Nepal |
