Nepal Rastra Bank (NRB), the central bank of Nepal, reportedly has announced that financial institutions will be allowed to open new branches in the capital of Kathmandu “only after they open a branch outside Kathmandu and one in any of the 30 districts recognised by NRB as deprived of any banking facility.” NRB also will provide interest free loans to banks that open branches in remote areas. The size limit of such loans has not been disclosed.
As of 2012, approximately 60 percent of business activity for financial institutions and 66 percent of total deposits nationwide are concentrated in Kathmandu. Banks located in the capital cover 9.4 percent of Nepal’s population [1].
By Brendan Millan, Research Associate
About Nepal Rastra Bank (NRB): Established in 1956, NRB is Nepal’s central bank. NRB formulates and monitors the nation’s monetary and fiscal policy and regulates the nation’s banking and financial sectors. For the year 2010, NRB reported total assets of NPR 299 billion (USD 3.67 billion).
Sources and Resources:
[1] The Himalayan Times: “Central Bank focuses on Expanding Banking Access to Rural Population.”, http://www.thehimalayantimes.com/fullNews.php?headline=Central+bank+focuses+on+expanding++banking+access+to+rural+population&NewsID=326804
MicroCapital.org Article, February 27, 2012, “Insurance Regulatory Authority of Nepal to Launch Microinsurance Guidelines in March”, https://www.microcapital.org/microcapital-brief-insurance-regulatory-authority-of-nepal-to-launch-microinsurance-guidelines-in-march/
MicroCapital.org Article, October 26, 2011, “Nepalese Government Plans to Introduce Microinsurance Program in 10 Rural Districts,” https://www.microcapital.org/microcapital-brief-nepalese-government-plans-to-introduce-microinsurance-program-in-10-rural-districts/
MicroCapital.org Article, March 8, 2011, “Beema Samiti (Insurance Board) of Nepal Forms Panel to Define Microinsurance Products,” https://www.microcapital.org/microcapital-brief-beema-samiti-insurance-board-of-nepal-forms-panel-to-define-microinsurance-products/
MicroCapital.org Article, April 9, 2010, “Nepal Rastra Bank (NRB) Allows Microfinance Institutions (MFIs) and Non-Governmental Organizations (NGOs) to Mobilize Deposits”, https://www.microcapital.org/microcapital-brief-nepal-rastra-bank-nrb-allows-microfinance-institutions-mfis-and-non-governmental-organizations-ngos-to-mobilize-deposits/
MicroCapital Universe: Nepal Rastra Bank (NRB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nepal+Rastra+Bank+%28NRB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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