The financial system is a system that allows the transfer of fund between the savers and the borrowers. The general component of financial system are government, general public, foreigners and business entities. The components or regulators of financial system in Nepal are:
- Ministry of Finance
- Nepal Rastra Bank
- Insurance Board
- Security Board of Nepal
- National Cooperative Development Board
- Investment Board
1. Ministry of Finance
Ministry of Economic and planning was established by Government of Nepal in 1963. Along with formulating plans, MEP also handled the economic affairs of the country. It also negotiated and coordinated with donors. MEP was dissolved in 1968 and separate National Planning Commission and Ministry of Finance were established. Since then, MOF has been responsible for all economic and financial affairs of the country.
2. Nepal Rastra Bank (NRB)
Nepal Rastra Bank was established in 1956 under the Nepal Rastra Bank Act 1955. It is regulatory, monetary and supervisory of banking and financial institution. In Nepal the financial institution are categorized as Class A: Commercial banks, Class B: Development Banks, Class C: Financial Institutions and Class D: Micro Finance Institution. There are altogether 218 BFIs under NRB.
3. Insurance Board (IB)
Beema Samity or Insurance Board is constituted to systematize, regularize, develop and regulate insurance business in Nepal. Insurance business in Nepal is catogorized as Life-Insurance Business and Non-Life insurance business. There are all together 16 non-life insurance and 9 life insurance companies in Nepal.
4.Securities Board of Nepal (SEBON)
Government of Nepal established (SEBON) was established 1993 as an apex regulator of securities in Nepal. It currently regulates Nepal Stock Exchange (NEPSE), Mutual Fund and Derivatives Market of Nepal.
5. National Cooperative Development Board(NCDB)
NCDB was established by Nepal government in 1991 to revise the cooperative legislation and design a strategy for vitalizing the cooperative movement. Later in 1992 the permanent status of NCDB was conformed by the Parliament with the main function to assist the government and cooperative movement on policy matters organize the technical and financial assistance to cooperative movement and to serve as a coordinating body between the government and cooperative movement.
6. Investment Board
Investment Board Nepal is created under Nepal Investment Act, 2011 by constituent assembly acting as Parliament as per Article 83 of Interim Constitution of Nepal. The investment board is entrusted to promote the economic development of the country by crating investment-friendly environment by means of mobilizing and managing public-private partnership, cooperative, domestic and foreign private investment, orderly and rapid industrialization, development of infrastructure and other sectors for employment and offer meaningful contribution for poverty alleviation.
5. National Cooperative Development Board(NCDB)
NCDB was established by Nepal government in 1991 to revise the cooperative legislation and design a strategy for vitalizing the cooperative movement. Later in 1992 the permanent status of NCDB was conformed by the Parliament with the main function to assist the government and cooperative movement on policy matters organize the technical and financial assistance to cooperative movement and to serve as a coordinating body between the government and cooperative movement.
6. Investment Board
Investment Board Nepal is created under Nepal Investment Act, 2011 by constituent assembly acting as Parliament as per Article 83 of Interim Constitution of Nepal. The investment board is entrusted to promote the economic development of the country by crating investment-friendly environment by means of mobilizing and managing public-private partnership, cooperative, domestic and foreign private investment, orderly and rapid industrialization, development of infrastructure and other sectors for employment and offer meaningful contribution for poverty alleviation.
0 comments:
Post a Comment