Nepali Banking Sector Shows Signs of Recovery, ICRA Nepal Report Indicates

Kathmandu. A study report has shown that the Nepali banking sector is gradually entering a phase of improvement. The detailed study report titled 'Nepalese Banking Sector: Performance Update and Outlook' recently released by ICRA Nepal has shown such a situation.

Although the problems existing in the banking system, which has been facing high non-performing loans, liquidity imbalance, and severe pressure on capital adequacy for the past few years, have not been fully resolved, the study concludes that the rate of further risk creation is decreasing.