An Analysis of Financial Performance among National Level Microfinance Institutions in Nepal

Nepalese banking sector has seen the vast change in the sector over the last few years. The sector has seen the relatively more aggressive strategy of the financial institutions in recent years. Today due to the concept of globalization banking sector has become more liberalized and systematic over...

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Published inLecture notes in engineering and computer science Vol. 2233/2234; p. 777
Main Authors Bipin, Prakash Kumar, Pingfeng, Liu, Shah, Rajeev Kumar, Wickramaarachchi, Wiraj Udara, Thapa, Kiran
Format Journal Article
LanguageEnglish
Published Hong Kong International Association of Engineers 14.03.2018
Subjects
Banking
Finance
Financial services
Globalization
Microfinance
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Summary:Nepalese banking sector has seen the vast change in the sector over the last few years. The sector has seen the relatively more aggressive strategy of the financial institutions in recent years. Today due to the concept of globalization banking sector has become more liberalized and systematic over the years. With the arrival of private banks and joint venture banks, Nepalese banking sector has been able to cater the competition in the sector which has increased the bargaining power of the customers. Making finance accessible to the poor is not an easy task for the creation of wealth in developing economies where there exists a huge unmet demand for financial services. So far, access to financial services by the poor from financial mainstream institutions is very limited, mainly due to their inability to meet the eligibility criteria, including collateral. The Study shows the sampled Microfinance Institutions (MFIs) have good loan portfolios which are also indicated by the negative percentage of change in Non-Performing Assets (NPA) except Swabalamban Laghubitta Bikas Bank Limited (SWBBL). As compared to the quality of loan portfolio, SWBBL has the below good loan than other considered three MFIs. MFIs profit per employee is also good.
ISSN:2078-0958
2078-0966