Nepal, Dec. 12 -- The financial sector in Nepal comprises 20 commercial banks, 17 development banks, 17 finance companies, 54 microfinance institutions and approximately 31,000 cooperatives. Despite a diverse mix of Bank and Financial Institutions (BFIs), the NRB-UNCDF study (2024) found that formal institutions meet only 40 percent of the demand for financial services, while cooperatives cover another 20 percent. Similarly, Nepal Financial Inclusion Report (IFC, 2023) revealed that 77 percent use banking services and 11 percent use other formal financial services, while only 47 percent access credit from formal institutions. These studies indicate that many poor households are still left without access to financial services.

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