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Rising Non-Banking Assets and Loan Write-Offs Raise Concerns in Nepal’s Banking Sector
Kathmandu – Non-banking assets (NBA) and loan write-offs in Nepal’s banks and financial institutions have been increasing due to the slowdown in economic activities. According to Nepal Rastra Bank, the total non-banking assets of banks and financial institutions reached NPR 51.20 billion by mid-February of the current fiscal year. During the first seven months of the fiscal year, these assets increased by around NPR 650 million, while total loan write-offs rose to NPR 9.86 billion. The slowdown in the economy has reduced borrowers’ repayment capacity, forcing banks to acquire collateral and write off more bad loans. Rising non-banking assets may also affect banks’ profitability and shareholder dividends. To address the issue, the government is preparing to establish an Asset Management Company (AMC) to help manage non-performing loans and distressed assets.
NEPSE TRADING
·13 Mar, 2026
