The Government of Nepal recognizes the importance of a well-functioning financial sector as one of the key drives in support of the Government's priority to reduce inequalities and poverty. However, challenges for financial inclusion in Nepal remain ubiquitous. Financial inclusion refers to universal access to a wide range of financial services for people who need them, provided by a diversity of sound and sustainable institutions at a reasonable cost, operating in a competitive market environment.Only 25.3% of the Nepalese population have accounts in formal financial institutions, while only 16% of poor people have such access. This narrow inclusion is partly a function of the small-scale financial system in Nepal, valued at just over $13 billion- equivalent to a medium-sized bank in an industrialized country.As a consequence of limited financial inclusion, an overwhelming majority of poor people access financial services through informal mechanisms or hold assets in non-financial forms such as livestock and material goods.Informal mechanisms rarely reach scale or financial sustainability and offer clients limited protection, less choice and lower returns.
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Publisher:
UNCDF
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(2015
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Type / Script:
Bulletin or Poster
in English
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Keywords:
FINANCIAL SERVICES, FINANCIAL INCLUSION, FINANCE, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL POLICY, FINANCIAL LIBERALIZATION, BANKS, SAVINGS, LOANS, CREDIT, PAYMENTS, INSURANCE, RISK MANAGEMENT
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Thematic Group:
UNCDF
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Capital Development
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Thesaurus:
02.11.00
- Banking And Investment
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Reference Link:
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