emerging challenges in banking sector

  • High competition

After open market policy, economic liberalization, and Nepal becoming a member of the World Trade Organization, there seems to be intense competition in the banking sector in Nepal. As a result, challenges are increasing in the banking sector. An unhealthy environment competition is also being created among the banks which may develop into big challenges in the future.

  • Lack of investment-friendly environment

Political instability and interference, lack of infrastructure development, lack of entrepreneurship, Lack of efficient manpower management do not help to create an investment-friendly environment.


  •  The problem in human resource management

The following problems can be seen under the problem of human resources. Lack of skilled manpower, big gaps in service facilities according to the level, lack of motivation in employees, poor management, providing employment opportunities to people they know instead of selecting qualified employees, not being able to manage the right employees in the right place.

  •  Lack of good governance

overvaluation of collateral, credit flow to low collateral, increasing activities such as fraud and forgery, lack of secure technology, which has led to ATM theft, Don’t invest in productive sectors.

  •  The problem of liquidity management·
  • The problem in credit management·
  • The problem in information·
  • Political interference

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