Nepalese Bank

Until the mid 1980s, Nepal?s financial sector was closed to orthogonal banks and was effectively controlled by state own banks RBB and NBL. In 1984, policies were liberalized and banking exertion was opened to private sector. After 1984 there was rapid meekness of joint venture commercial banks in the Nepali financial market. In the first phase Nabil Bank (1984), Nepal Indo-Suez Bank (1985) and Nepal cadence chartered bank (1987) entered the market. In the second phase Himalayan bank, Nepal SBI Bank, Nepal Bangladesh Bank, Everest Bank, Bank of Kathmandu, Bank of Ceylon entered the market. Later 6 domestic owned banks entered the banking industry. Altogether there 17 commercial banks in the solid ground as of mid- July 2004.The number of commercial banks branches is 423 of which 375 ar branches of commercial banks and other 44 Agriculture Development Banks branches. In Nepalese banking industry there is a lack of product/ assistant differentiation. All banks are offering the same traditional banking products same deposit schemes, loans, remittances, L/C, guarantee facility to their customers. Only the wide-ranging and established banks are providing new go like ATM, conviction card, tele banking, networked banking and e-banking.

Banks like Himalayan, Nabil and Standard Chartered are the pioneers in introducing innovational and modern banking products in the market. Banking industry is accumulating high level of NPA. any player in the industry is focusing on fashioning profit and increasing market share, resulting in unhealthy competition. Banks are competing through interest rate reduction, issuing loans irrespective of borrowers credibleness and authenticity. In course of making their credit bigger and go around term profits banks are becoming least visionary. Nepalese banking industry requires innovation in quality and quantity of services being provided to the customers. But limited attempts are being made. product differentiation is required to withstand vigorous... If you want to get a full essay, order it on our website: Orderessay

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