Comparative Study of Commercial Banks of Nepal

5381 Words Oct 26th, 2012 22 Pages
Banking industry has stood as the most vulnerable yet the most profitable sector in Nepalese economy. The banking sector is prospering with much lesser difficulty in spite of increasing economic downturn and political instability in the nation. The clear picture is reflected in Nepal stock exchange; where 90% of stock traded is that of financial sector of which majority shares are held by commercial banks. With more number of commercial banks catering to the same market, it has given rise to the intense competition. So far, there are 31 commercial banks, 87 development banks, 79 finance companies, 21 micro-finance development banks, 16 saving and credit cooperatives and 38 NGO (financial
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It is closely related to the history of money. The banking industry that we have at present is the outcome of a series of stepwise developments that have occurred in the process of its evolution. The History of Banking begins with the first prototype banks of merchants of the ancient world that made grain loans to farmers and traders carrying goods between cities; recorded as having occurred at about 2000 BC within the areas of Assyria and Babylonia. Later on, in ancient Greece and during the Roman Empire, lenders based in temples made loans and added two important innovations: the accepting of deposits and the changing of money. Archaeology from this period in ancient China and India shows the existence also of money lending activity. In England, banking and its origin can be started with goldsmith who adept the valuable thing of the public for the safe keeping at certain commission (interest) and to be returned to those, the depositor wished. According to Crowther, modern Banking has three ancestors- The Merchant, The Goldsmith and The Money Lender. As a public enterprise, banking made its first beginning around the twelfth century in Italy and the “Bank of Venice”, founded in 1175 A.D. was the first the public banking institution. Following it, “Bank of Barcelona” and “Bank of Genoa” were
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