Submit your Article

Recently appointed Governor of Nepal Rastra Bank, Biswo Poudel, has raised concerns over the concentration of bank and financial institution loans among a limited group of individuals and business households. Speaking during a discussion on the Bank and Financial Institutions (First Amendment) Bill in the Finance Committee, Governor Poudel emphasized the growing debate around the unequal distribution of banking loans and the need to clearly separate the roles of bankers and businesspersons.

A key concern is that a significant share of financial sector loans is directed toward high-income individuals and households, while low-income groups and rural communities remain largely underserved. This disparity has reignited calls to reform the banking structure, including proposals to limit the overlap between those who run banks and those who borrow from them.

Although the number of banks and financial institutions in Nepal has decreased—largely due to the central bank’s push for mergers and acquisitions since 2010—branch expansion has continued nationwide, increasing visibility at the local level. This expansion has intensified competition in the banking sector, often with a strong focus on profit.

On the surface, banks appear to be serving various segments of society. However, credit access remains skewed, with banks primarily extending loans to urban elites, established industrialists, and salaried employees—while collecting deposits from rural areas. Governor Poudel publicly stated this disparity, noting that banks are not providing adequate financial support to farmers, low-income earners, and those lacking formal documentation.

The consolidation of banks through mergers has enabled them to set interest rates at their discretion, which in some cases has led to unhealthy competition or even informal agreements that exclude weaker borrowers. While banks continue to report ample liquidity, reluctance to lend—especially to small and medium enterprises (SMEs)—is contributing to economic stagnation and job loss. Many such businesses, key drivers of employment and production, are struggling to access credit.

This lending imbalance has also contributed to a rise in non-performing loans. Currently, bad loans account for around five percent of total bank lending. The inability of the lower economic class to access institutional credit has pushed many into the hands of informal lenders charging high interest rates, commonly referred to as ‘meter interest’. This, observers argue, is a result of institutional failure to provide inclusive financial services.

Nepal has long been recognized as one of South Asia’s most unequal economies. Over the past four decades—alongside the growth of financial institutions—economic inequality has widened. While banks have helped the wealthy manage and grow their assets, they have done little to address the financial needs of the poor. Critics argue that those with control over banks are often selected from elite business circles, giving preferential treatment to their close associates when it comes to loan disbursement.

In this context, the proposed amendment to the Bill—to separate the roles of bankers and businesspersons—has gained renewed attention. Although discussions have stalled in the past, Governor Poudel’s recent remarks have brought the issue back into focus.

According to data from Nepal Rastra Bank, the total number of deposit accounts in banks and financial institutions has reached over 511,000—exceeding the population. However, this figure does not indicate universal financial access, as many individuals hold multiple accounts. Significantly, only about four percent of account holders have access to credit, while the remaining 96 percent do not, often due to a lack of collateral or financial literacy.

Governor Poudel’s comments underscore the need for more equitable access to financial resources, particularly for those who contribute through remittances or small rural deposits but remain excluded from formal credit. While some bankers have generated substantial profits, returns for shareholders remain modest, prompting questions about wealth distribution within the sector.

Ultimately, the broader concern is that economic development and poverty reduction will remain out of reach unless financial access is expanded equitably. Past assumptions—such as increased bank branches equating to increased financial inclusion—are misleading. What matters more is who controls capital and who benefits from credit distribution. Most banks are overseen by businesspersons, and those within their networks often enjoy easier access to loans.

There’s a popular Calvin and Hobbes quote that goes: Never in the history of calm down has anyone calmed down by being told to calm down. For me, no other quote has resonated as much as this one, especially in the past few months when everyone around me has been telling me to calm down or take it easy the minute they see I’m a little worked up. But is there anything such as a stress-free life? Life demands so much from you and it’s not actually all that bad. 

I don’t understand why people see every little stress as something negative and even scary. While chronic stress is definitely not a good thing, I feel daily stresses actually keep you on your toes and stop you from becoming complacent. They make you think, ideate, and come up with effective solutions. It can put your brain in problem solving mode and push you out of your comfort zone. There is something called positive stress (eustress) and studies have shown that it can actually be beneficial for your overall well being. 

And to be honest, there is no avoiding stress. There are different chores or things that go wrong in the house that need your attention. We all know how frustrating it is to get anything done in Nepal. One simple task needs a dozen phone calls. At work, you have deadlines to meet, difficult colleagues to deal with, issues that need ironing out, and bureaucratic hurdles that give you splitting headaches. Anticipation, excitement, and even anger sometimes can cause stress that motivates you to take action and change what you don’t like about your life. 

I’m not talking about chronic stress. I understand that has a lot of negative health impacts but acute stress, those that come and go quickly, isn’t something that needs to be feared and shunned. Most people around me don’t seem to realize that stress is a part of life and you can’t escape it simply by ignoring your problems or ‘letting go’. Talking about your problems or dwelling on them is often seen as marinating in negativity. But for me, discussing issues with my parents or partner or contemplating about them on my own makes me more likely to be able to fix what’s wrong. On the other hand, if I were to simply try to push problems out of my mind (as I’m often told to) I’d inevitably be consumed by them.

I must confess that I’m actually on the verge of losing it if one more person tells me to calm down. When people tell me to let things slide, they are asking me to put up with rude behavior, be okay with not getting things done, or give time for things to settle on their own (which I think is such a cowardly and lazy thing to do). All this, I believe, will make me vulnerable and unable to cope with my problems in the long run as it will hamper my decision-making skills and take me from being an action-oriented to an avoidant person. 

As a society, we have adopted a negative mindset towards stress. The moment you tell someone you are stressed or worried, they tell you to take a deep breath, calm down, or just let it go, sometimes even without asking what’s bothering you. ‘Don’t stress’ is the lamest advice I have ever heard. It’s like telling an anxious person not to be anxious or someone who has the flu or a stomach ache to just pretend they aren’t ill. It’s the most useless advice because it doesn’t work and it also shows you that the other person doesn’t care about you or your problems. Have you watched the same people bending backwards trying to fix things when it’s their or their loved ones’ lives in question?

According to Dr Richard Shelton, Department of Psychiatry at the University of Alabama, Birmingham, stress is the body’s fight or flight response being activated and it’s meant to be protective, not harmful. The key, he says in an article I read recently, is viewing stressful situations as a challenge rather than a roadblock. 

A few basic ingredients in the pantry, a high-speed blender, and a basic oven are all you need to have in order to whip up some wonderful desserts in your kitchen. The good thing is that most of the recipes we’re sharing today don’t take more than five minutes of preparation. All you have to do is assemble the ingredients, blend them all together, and bake them in the oven or refrigerate them. You don’t believe us? Try them out yourselves. You can thank us later.

Oats banana mug cake

This is a gluten-free, and sugar-free recipe. It’s healthy and hearty and you can actually have this dessert for breakfast or as a mid afternoon snack. Blend half a cup of oats, a medium sized ripe banana, one egg, 1/4 cup of milk, 1/4 cup of baking soda, and a pinch of salt in a high-speed blender. You can add a teaspoon or two of honey or maple syrup if you want some extra sweetness. Once the mixture is ready, pour it into a well greased oven, safe mug or baking dish. You can sprinkle some chocolate chips or raisins on top. Bake for 30 minutes on medium heat.

Mango cheesecake

There are many places in Kathmandu that serve really good cheesecakes. But if you, like us, are skeptical of ordering cheesecakes at places you haven’t tried them before but still can’t resist the temptation then this amazing recipe is for you. We can guarantee that you won’t be spending money on restaurant cheesecake anymore. Grind eight to 10 digestive biscuits and transfer it into a bowl. Add two to three tablespoons of melted butter and let it set. Blend one cup paneer with one cup of hung curd. You can also add a tablespoon or two of honey or any sweetener of your choice to this mixture. Lay this mixture over the digestive biscuit layer. The top most layer is simply mango puree. Refrigerate this for at least four hours before serving.

Healthy brownie 

The brownie recipe we are sharing today is a gluten-free and an eggless one. But don’t be fooled, it’s every bit delicious and moist as the best brownie you’ve ever had. For this, you will have to dry roast 1/4 cup of almonds, 1/4 cup of walnuts, and half a cup of pumpkin seeds. Once that is done, grind it into a smooth powder. Add half a cup of cocoa powder, half teaspoon baking soda, and one teaspoon baking powder and give it all a good mix. You can add one 4th cup of jaggery or half a cup of maple syrup according to your preference. Add 3/4 cup of milk and lightly mix the batter. Pour the batter into a dish lined with baking paper and bake in the oven at 160°C for 30 to 35 minutes. Once done, refrigerate for an hour before indulging in a thick slab of the delicious homemade brownie.

Easy chocolate bar

The hot weather demands ice cream. But ice cream is seldom a guilt free indulgence. What if we told you that you can make healthy ice cream at home and enjoy it without stressing about the calories? The recipe includes fiber rich fox nuts (makhana) and protein rich peanuts. Soak one cup of makhana and half cup of peanuts in a cup of hot milk for half an hour. Blend this with two tablespoons of milk powder, a few drops of vanilla essence, and four tablespoons of honey. Pour this in ice cream molds and freeze overnight. Melt 200 g of dark chocolate and add four tablespoons of coconut oil to it. Dip the ice lollies in it and you have made yourself a healthy and tasty treat.

Date bites

If you have found all the recipes we have shared till now to be easy, wait till you hear this one. It’s one of the easiest things you will ever make and it’s healthy, tasty, and filling as well. You only need four ingredients to make this and you don’t even have to bake it. It’s one of those things you can make when you don’t want to put in much effort, but want to indulge in some delicious dessert. Deseed some soft dates and line them in parchment paper. Using the bottom of a glass, flatten them out and put a tablespoon of peanut butter on top of each. Top it with melted chocolate and garnish with roughly chopped pistachios. Freeze them overnight and your date bites are ready. You can enjoy this as a post meal treat or even as snacks.

With the federal budget for the upcoming fiscal year announced, it is crucial to review the transparency of the system by which the budget is made. Budget formulation and public finance management systems in Nepal have undergone significant changes in recent years, especially after the implementation of federalism in 2015. Participatory budgeting and public accountability are repeated themes in every budget announcement. Political parties boast of presenting citizen-centric budgets that promise to improve governance quality and address corruption. While the Ministry of Finance has made attempts to deliver on these claims, gaps still remain.

In a survey conducted by the International Budget Partnership (IBP) in 2023, Nepal was ranked 58th out of 125 countries for budget transparency, displaying moderate performance in public access to credible budget information. While this performance is relatively better compared to other South Asia countries, it falls short of standard international benchmarks. During six rounds of IBP surveys between 2010 and 2023, Nepal’s budget transparency score averaged 42, consistently remaining below the ‘sufficient score’ of 61. 

Untimely and limited disclosure of key budget documents, combined with the absence of a citizens’ budget, and limited public participation in budget formulation, are key bottlenecks that keep the country’s budget transparency low. 

Political interference in the budget-making process is another factor that impedes transparency. Rent-seeking behaviour and political lobbying to alter tax rates in favour of interest groups are not uncommon in Nepal. In 2022, the then-finance minister, Janardan Sharma, had to temporarily resign following allegations that he had employed two unauthorized persons to tweak tax rates the day before the 2022-23 budget was presented. In 2023, allegations emerged that information about tax increases on electric vehicles was leaked to car dealers, who then rushed to bring the cars into Nepal before the budget was presented. In both instances, the finance ministers were given a clean chit. Such instances significantly dent the country’s image on budget transparency internationally. 

In addition to the above factors, a major driver of Nepal’s poor budget transparency is low public accountability. Citizens possess limited knowledge of the budget-making process and public financial management (PFM) systems, resulting in low budget literacy levels in the country. 

This knowledge gap is driven by the complexity of our PFM system and the scarcity of resources for citizens to learn about Nepal’s budget management. 

The World Bank’s Third Public Expenditure and Financial Accountability Assessment assigns Nepal a ‘C’ rating regarding access to fiscal information, highlighting large gaps in the availability of critical public finance data. Implementing federalism has further layered PFM processes, increasing the already wide public fiscal knowledge gap. And during this time, there have been limited initiatives by the government to educate taxpayers about how public money is being raised and spent.

The above discussion does not mean that a complex fiscal system is an unwanted system. Complexity can ensure accountability, improve public participation and establish best practices for fiscal management. However, it should be complemented by enhancing public knowledge of how fiscal systems work in the country. Taxpayers should get to know how their tax money is being spent and how effectively the government is utilizing the funds to deliver welfare outcomes. As sub-national governments now bear significant expenditure responsibilities, public fiscal education has become particularly important. It can empower the masses to hold their electorates accountable and enable them to demand services that sub-national governments are constitutionally mandated to provide. 

Research from the World Bank suggests that there is a systematic relationship between budget literacy and budget transparency. Budget literacy initiatives can effectively close the budget transparency feedback loop by enhancing the citizens’ capacity to analyze their government’s fiscal data and scrutinize budgets. Research also confirms that participatory budgeting is strongly associated with a reduction in extreme poverty and an increase in access to basic services. 

While several initiatives exist that can enhance budget literacy, there are a few practical ones that are feasible in Nepal’s context. Two important interventions stand out: one, publishing a citizen’s budget that presents and summarizes key budget information in a less technical, easy-to-understand format (a practice many countries undertake); two, introducing budget literacy components in education curricula to build an understanding of public finance management among students and youth. The IBP has consistently urged Nepal to adopt these interventions, particularly the publication of a citizens’ budget, as a crucial step toward improving budget literacy.

Other potential interventions include creating interactive online platforms that act as a single-source-of-truth for public finance data, conducting awareness programs at the community level, and undertaking extensive consultations with civil society for budget formulation. These interventions have the potential to significantly enhance Nepal’s fiscal transparency and bring its scores in line with international standards.

Public accountability starts with education. We need to proactively learn about the country’s fiscal system and empower ourselves to constructively criticize the government in cases of failures and inefficiencies. Key government stakeholders—the Ministry of Finance, the Office of the Auditor General, Public Expenditure and Financial Accountability Secretariat, and others, need to build the enabling frameworks. Think tanks and development agencies need to enhance their role in reporting on Nepal’s public finance management and help bridge the knowledge gap. Generating public interest in this critical but often overlooked field is important as we enter the new fiscal year, and all stakeholders must play their part to this end.