Development of the Financial System and Its Impact on Poverty Alleviation in Nepal
AbstractThe article reviews briefly the financial and monetary developments in Nepal since the mid-fifties both in developmental and poverty perspectives. Particularly, the role of the banking sector in rural financing and specific poverty targeted programs is reviewed in detail. Impact analysis is made on the basis of availability of data. The article concludes that, in spite of the tremendous growth of the financial sector in the post-liberalization period, its penetration in the rural areas has declined. There seem to be no backward or forward linkages of this financial development with the real sectors of the economy and, consequently, to poverty alleviation. Though government and non-government micro-financing institutions and also the cooperatives have grown fast in the 1990s, they are also concentrated in urban areas. The plethora of targeted credit programs has made very little dent in the rural credit market. More than 80 percent of the borrowing households have still to depend on non-formal sources for their credit needs. Majority of the targeted credit programs have been unable to directly cater to the needs of the bottom 20 percent households because the poor lack other resources and knowledge to benefit from the saving-credit programs. Lastly, inadequacy of financial and monetary data for evaluating the impact of financial development on the economy as well as on poverty is noted.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Nepal Rastra Bank, Research Department in its journal NRB Economic Review.
Volume (Year): 15 (2003)
Issue (Month): (April)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Bishnu Prasad Gautam).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.