The document discusses challenges faced by small and medium enterprises (SMEs/MSMEs) in accessing formal finance in Nepal. Some key points made are: SMEs contribute significantly to Nepal's GDP, exports, and employment but 95% face credit constraints and 70% do not use any formal credit. Common SME challenges include high costs of borrowing, lack of collateral, missing value chain support, and financial illiteracy. The National Banking Institute aims to address these challenges through initiatives like developing financial literacy resources, conducting needs assessments, and promoting policies like collateral-free loans and value chain support.

1. 17/17/2019
Central Plaza, Narayanchour, Naxal,
Kathmandu.
Sanjib Subba
National Banking Institute

2. National
Financial
Inclusion
Strategy
National Financial
Literacy Strategy
Legal and
Regulatory
Framework
Community
Engagement
Curriculum
Entrepreneurship
Development
Monitoring &
Evaluations Mission
Strategy
Objectives
Smart
Goals
Vision

3. Adult Bank account in Nepal
Year Global (FINDEX) Nepal (NRB)
2011 51% 25.3%
2014 62% 33.8%
2017 69% 45.0%

4. Access to
FORMAL
Finance
LVR 1:3
High cost of
borrowings
Advisory
Services
Missing value
chain support
Tax, audit and
paperwork's
challenge
Banking and
Financial
Literacy
MSME
Challenges

5. Need
Assessment/Gap
Analysis
Policy
formulation
Collateral free
loan
Value Chain
Support
Fintech
/Digitization
Financial Literacy

6. 90%
of the total industrial
Gross Domestic Product
(GDP)
80%
of industrial
employment
70%
of the total national
export
25%
GDP from SME
95%
face credit constraints
70%
do not use any formal
credit
15%
disappear in two years
40%
exit the market in
four to five years
SME/MSME
in Numbers

7. Financial
Literacy Book
(Down
loadable)
Loan and Savings
Calculator
FAQs Success Stories
Videos
Songs
Power Point
Slides
(Down loadable)
Download App at:
Google play store
“NBI Nepal”

8. Thank You