Nepal's Banking Sectors : An overview of key institutions

Nepal's banking system is divided into central bank, commercial banks, development banks, finance companies and microfinance.

Nepal Rastra bank is the central bank and is responsible to publish monetary policies and regulations.
Commercial bank operates the services like saving, loans, transactions including domestic and international.
Development bank helps in financing specific sectors like agriculture, local industries etc
Finance and microfinance institutions focus on various financial services. The economy of the country depends on these sectors.

KEY BANKING INSTITUTIONS OF NEPAL.
NEPAL RASTRA BANK
ESTD: April 26, 1956
Role: To formulate monetary policy.
          To formulate foreign exchange policy.
          To maintain stability in market prices.
          To issue currency notes.
          To regulate and supervise banks
          To develop efficient payment and banking system.

NEPAL BANK LIMITED.
ESTD: November 15, 1937
The first bank of Nepal that was established by Juddha Shumsher jbr to open up the closed economy and to provide banking and financial facilities to common people. At the time of establishment government had 40% and private sectors had 60% of its share.

RASTRIYA BANIJYA BANK.
ESTD: January 23, 7966
The largest commercial bank of Nepal which is fully owned by the government. It has earned the most faith among all the banks from customers. It carries out commercial banking activities as per the provisions of the "Bank and Financial institutions Act 2073," (2017).

AGRICULTURE DEVELOPMENT BANK
ESTD: 1968
It was established for the purpose of developing production and productivity in the sector of agriculture in Nepal. It was established as the successor of cooperative bank. It helps the farmers by providing low interest credit.

NEPAL INVESTMENT BANK LIMITED
ESTD:1986
It was established as a joint venture between Nepalese and French partner and was named Nepal Indosuez Bank Ltd and latter in 2002 Nepalese investors purchased the 50% shares owned by French partners and named Nepal investment bank limited.

NABIL BANK LIMITED
ESTD: july 12, 1984
The first multinational bank of Nepal. It was established as a joint venture between Nepal and Arab. It was established with the objective of extending international standard modern banking services in Nepalese community.
As the above four public and two private banks there are many other banks established and are in operation to provide services to people and they are also contributing in building nation's economy.