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NEPAL ECONOMIC FORUM
INSIGHTS ON NEPALI BANKING SECTOR
Contextualisation 1.1 Objective of the Study Nepal has, for decades, been striving to find the right development strategy to promote sustainable development in the economy. Although various acts, such as the Competition Promotion and Market Protection Act 2007 (2063 B.S.) and Consumer Protection Act, exist, these acts have not been effective enough to curb cartel behavior within the Nepali economy. This study is concentrated towards studying the existence of such collusive behavior in the banking sector and how this influences the banking system of the nation. It endeavours to identify various forms of collusive behavior that are prevalent in the banking sector and how they are perceived by various stakeholders. In the end, the study makes recommendations for progressive reforms that can elevate the banking sector. Additionally, the study would also identify, through desk research and consultations with relevant stakeholders, the rationale behind colluding and forming and/or being part of such banking/financial associations. Understanding the rationale would offer a 360-degree view, especially from the perspective of bankers and non-bankers, which would enable the study to make a more balanced assessment. Figure 1: Understanding the perception of collusive behavior through the lens of ‘Bankers vs. Non-bankers’
GENERAL PERCEPTION
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R E A L I T Y
BANKS’ PERCEPTION
