Financial Institution in Nepal

TABLE OF CONTENTS

ACKNOWLEDGEMENT…………………………………………………………………………i

ABSTRACT………………………………………………………………………………………ii

TABLE OF CONTENTS 1
LIST OF FIGURES 3
1. INTRODUCTION 4
1.1. Background 4
1.2. Objective 4
1.3. Methodology 4
2. LIBERALIZATION, PRIVATIZATION AND GLOBALIZATION 4
2.1. Liberalization 4
2.1.1. Introduction 4
2.1.2. Causes for Liberalization 5
2.1.3. Pros and Cons of Liberalization 5
2.2. Privatization 6
2.2.1. Introduction 6
2.2.2. Causes for Privatization 7
2.2.3. Pros and Cons of Privatization 7
2.3. Globalization 8
2.3.1. Introduction 8
2.3.2. Pros and Cons of Globalization 8
2.3.3. Measures for Globalization 9
3. BANK 10
3.1. Introduction 10
3.2. Types 11
3.2.1. Central Bank 11
3.2.2. Development Bank 11
3.2.3. Commercial Bank 12
3.3. History of Banking Sector in Nepal 13
4. REQUISTIE OF A BANK AND FINANCIAL INSTITUTIONS 14
4.1. The capital adequacy to be maintained 14
4.2. Classification of Capital Fund 14
4.3. Total Risk-weight Assets 17
4.4. Description to be sent with regard to capital fund 17
4.5. Provision for Auditing 18
4.6. Actions may be taken in case Directives as to capital fund are not followed: 18
4.7. Repeal and Saving 18
5. TREND ANALYSIS OF BANKS IN NEPAL 19
6. CONCLUSION 25
7. REFRENCES 25

LIST OF FIGURES

Figure 1 Showing the growth rate of real per capita GDP because of Globalization 9
Figure 2 Chart showing the trends of financial institutions in Nepal 19
Figure 3 Banking Operations: Public vs. Private 19
Figure 4 Graph showing the Deposit/Credit of Commercial Banks (2001-2011) 20
Figure 5 Graph showing the GDP (Rs. in million) from 2001 to 2011 21
Figure 6 Graph showing the number of bank branches. 21
Figure 7 Graph showing the population per bank branches 22
Figure 8 Graph showing total deposits (Rs. in million ) from 2001 to 2011 23
Figure 9 Graph showing Total Credit (Rs. in million) from 2001 to 2011 23
Figure 10 Graph showing the total investment (Rs. in million) from 2001