Nepal, May 8 -- Nepal's ongoing crisis in the financial co-operative sector has exposed vulnerabilities within the country's financial system. Thousands of members are facing the loss of deposits due to mismanagement, fraud, and regulatory shortcomings, which have significantly eroded public confidence in non-bank financial institutions.

On the other hand, a silent global revolution is unfolding: the rapid growth of private credit markets in various economies, including Africa, where institutional investors are increasingly filling the void left by cautious banks.

This global trend presents a timely opportunity for Nepal to reimagine its financial architecture. By opening up the private credit market-underpinned by robust regulation and...