NRB Report Confirms 107 Licensed BFIs Operating in Nepal with Full Data Availability
Author
NEPSE trading
Nepal Rastra Bank (NRB) has released the latest Banking and Financial Statistics, Monthly report, confirming the presence of 107 licensed Banks and Financial Institutions (BFIs) in Nepal. These consist of commercial banks, development banks, finance companies, microfinance institutions, and an infrastructure development bank. As per the provisional data submitted to NRB, all 107 institutions have successfully provided their statistical data, marking a commendable level of compliance and operational transparency.
BFI Composition and Data Coverage
The breakdown of these institutions is as follows:
BFI Type | Total Licensed | Data Available |
|---|---|---|
Commercial Banks | 20 | 20 |
Development Banks | 17 | 17 |
Finance Companies | 17 | 17 |
Microfinance Institutions | 52 | 52 |
Infrastructure Development Bank | 1 | 1 |
Total | 107 | 107 |
All five categories of BFIs have reported 100% data availability for the reporting month. This demonstrates a strong culture of regulatory compliance, especially among microfinance institutions (MFIs), which make up nearly 49% of all BFIs (52 out of 107). Commercial banks, while fewer in number, play a dominant role in the financial system and have likewise shown complete data submission.
Interpretation and Insights
Complete Reporting: The fact that data is available from all 107 institutions highlights an improved regulatory framework and better adherence to NRB reporting protocols. This ensures more accurate monetary policy formulation and financial system oversight.
Microfinance Sector Dominance: With 52 entities, the microfinance sector has the highest representation, signaling the depth of financial inclusion efforts, especially in rural and semi-urban areas. However, this also implies that NRB must pay close attention to credit risk and over-indebtedness in the microfinance sector.
Balanced Development in Other Sectors: Development banks and finance companies both have 17 institutions, suggesting a balanced presence in SME financing and short-term lending. These mid-tier financial institutions fill the gap between large commercial banks and grassroots-level MFIs.
Infrastructure Lending Still Nascent: Only one infrastructure development bank is operational, indicating that long-term project financing in Nepal remains underdeveloped. This area could benefit from policy-level interventions to support national infrastructure goals.
Uniform Data Compliance: Unlike in previous years where submission delays or incomplete reports were common, the current report shows zero missing entries. This could be due to improved digital reporting systems, stricter NRB follow-up, or institutional readiness to comply with deadlines.
The full participation of all 107 licensed BFIs in the NRB’s statistical reporting process is a positive signal for Nepal’s financial system. It indicates improved governance, better data integrity, and a maturing banking sector. The NRB, as a regulator, now has a solid foundation of data to analyze sectoral trends, formulate informed monetary policies, and oversee financial stability measures. Going forward, focus areas may include expanding infrastructure banking and maintaining risk controls in the rapidly growing microfinance sector.
