The Economy of Nepal
Banks, Microfinance and Cooperatives
Nepal has many banks and thousands of savings and credit cooperatives, though financial stress at times reveals weak governance.
A crowded financial sector.
Banks
Dozens of commercial banks and finance companies operate.
Cooperatives
Thousands of cooperatives hold billions in savings of ordinary people.
Stress
Failures and fraud in some cooperatives caused losses to depositors.
Reforms
Regulators seek to consolidate banks and tighten supervision.
A village co-op
Members deposit small amounts and borrow for farm or household needs.
Assuming cooperatives are always safe
Oversight varies.
Key takeaways
- Many banks and co-ops operate.
- Depositors have faced losses.
- Consolidation is encouraged.
- Supervision needs strengthening.
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