IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Development of the Financial System and Its Impact on Poverty Alleviation in Nepal

Listed author(s):
  • Meena Acharya Ph. D.

    (Nepal Rastra Bank)

Registered author(s):

    The 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.

    If 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.

    File URL:
    Download Restriction: no

    Article provided by Nepal Rastra Bank, Research Department in its journal NRB Economic Review.

    Volume (Year): 15 (2003)
    Issue (Month): (April)
    Pages: 134-165

    in new window

    Handle: RePEc:nrb:journl:v:15:y:2003:p:134-165
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:15:y:2003:p:134-165. See general 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.