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 2011, 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:
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