Financial System is a set of institutional arrangements through which funds are transferred from surplus units (which has excess funds) to deficit units (which lack funds). Financial system composed with financial institutions, financial markets and financial instruments.
In Nepal, Financial system is in developing stage. Nepal Stock Exchange (NEPSE) is only an organized stock exchange in Nepal. There is also over the counter (OTC) market also. Capital market is not performing well. Stock prices and NEPSE index is decreasing several times than previous years.
Banks are the dominant financial institution in Nepal as well as other institutions like pension fund, provident fund, insurance company, mutual funds etc also plays major role in financial sector. However, financial services are not reach to poor and remote area people. They are concentrating their service only to town focus.
Main Financial instruments are Common Stock, Debentures, T-bills, Bank Load, CDs etc. Common Stock and Debentures are traded in NEPSE and OTC markets. T-bills are frequently issued by Nepal Rastra Bank to help liquidity necessities of financial institutions.
As Nepal one of the LDC, financial system is not perfectly developed. There is rumors about banks and other financial institutions. Many credit and saving cooperatives frauds people's deposit. Investors are not well aware of market.
In Nepal, Financial system is in developing stage. Nepal Stock Exchange (NEPSE) is only an organized stock exchange in Nepal. There is also over the counter (OTC) market also. Capital market is not performing well. Stock prices and NEPSE index is decreasing several times than previous years.
Banks are the dominant financial institution in Nepal as well as other institutions like pension fund, provident fund, insurance company, mutual funds etc also plays major role in financial sector. However, financial services are not reach to poor and remote area people. They are concentrating their service only to town focus.
Main Financial instruments are Common Stock, Debentures, T-bills, Bank Load, CDs etc. Common Stock and Debentures are traded in NEPSE and OTC markets. T-bills are frequently issued by Nepal Rastra Bank to help liquidity necessities of financial institutions.
As Nepal one of the LDC, financial system is not perfectly developed. There is rumors about banks and other financial institutions. Many credit and saving cooperatives frauds people's deposit. Investors are not well aware of market.
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