In any economy, the importance of financial sector in general and banking sector in particular cannot be undermined. Banking sector definitely plays a pivotal role in the overall development of an economy. The economic reforms initiated by the government more than a decade ago have changed the landscape of several sectors of the Nepalese economy. The Nepalese banking sector is no exception.
This sector is going through major changes as a consequence of economic reforms. The changes affect the ownership pattern of banks, regulatory aspects, availability of funds, the cost of funds as well as opportunities to earn , range of services (fee-based and fund based), and management of priority sector lending. As a consequence of liberalization in interest rates and cutthroat competition, banks are operating on reduced spread.
Development Financial Institutions will have a lesser impact on the Nepalese economy. Consumerism is here to stay. Non-banking products, like insurance is going be a tremendous opportunity for banking sector.
The economic reforms have also generated new and powerful customers and new mix of players. The emerging competition has generated new expectations from the existing and the new customers. There still lie urgent needs to introduce new products. Existing products need to be delivered in an innovative and cost-effective way by taking full advantage of emerging technologies.
No comments:
Post a Comment