Thesis Chapters by Bijaya Manandhar
Shanker Dev Campus, 2019
This study examines the impacts of commercial bank operations which
includes bank loan & advances... more This study examines the impacts of commercial bank operations which
includes bank loan & advances, bank total deposit and bank total assets
on economic growth of Nepal. This study relies purely on secondary data and has conducted correlation and multiple regression analysis using panel data of twenty-eight commercial banks during the period of 1995/96 -2016/17. The data are collected from statistical bulletin of NRB and all “A class commercial bank financial reports and national accounts published by CBS. Trend Analysis has been done with the use of Ms-Excel 2019 and descriptive analysis, correlation analysis and multiple regression analysis has been done using SPSS Software Version 20. The empirical results show that bank loan & advances has negative impact on the economic growth of Nepal however the relationship between them is statistically significant. While total bank deposit and total bank assets have positive effects on the economic growth of Nepal though the relation of these two-independent variable with dependent variable seems statistically insignificant. The study implies that the policy makers in Nepal Rastra
Bank should focus their attention more on encouraging Banks to flow their more loan to productive sectors of Nepal which encompasses hydropower, agriculture, tourism, export, small and medium industries, pharmaceuticals, startups, cement and garments etc. that can create more employment opportunities in the country and bank loans should flown less loan to unproductive sectors which includes real estate, outstanding credit, share loan, mortgage . NRB should also encourage “A’’ class commercial banks to increase their total capital through various ways like merger, acquisition, FPO etc. Banks should also be directed to open branches in all local levels, which are designed on the basis of the federal structure. Banks should try to gain trust of more Nepalese people and companies by attracting them to open various types of deposit
account in their bank by providing various services along with opening an account like health insurance, mobile banking, ATM etc. Banks should be responsible to follow such directive and any defiance should be penalized as per the provision in the Nepal Rastra Bank.
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Thesis Chapters by Bijaya Manandhar
includes bank loan & advances, bank total deposit and bank total assets
on economic growth of Nepal. This study relies purely on secondary data and has conducted correlation and multiple regression analysis using panel data of twenty-eight commercial banks during the period of 1995/96 -2016/17. The data are collected from statistical bulletin of NRB and all “A class commercial bank financial reports and national accounts published by CBS. Trend Analysis has been done with the use of Ms-Excel 2019 and descriptive analysis, correlation analysis and multiple regression analysis has been done using SPSS Software Version 20. The empirical results show that bank loan & advances has negative impact on the economic growth of Nepal however the relationship between them is statistically significant. While total bank deposit and total bank assets have positive effects on the economic growth of Nepal though the relation of these two-independent variable with dependent variable seems statistically insignificant. The study implies that the policy makers in Nepal Rastra
Bank should focus their attention more on encouraging Banks to flow their more loan to productive sectors of Nepal which encompasses hydropower, agriculture, tourism, export, small and medium industries, pharmaceuticals, startups, cement and garments etc. that can create more employment opportunities in the country and bank loans should flown less loan to unproductive sectors which includes real estate, outstanding credit, share loan, mortgage . NRB should also encourage “A’’ class commercial banks to increase their total capital through various ways like merger, acquisition, FPO etc. Banks should also be directed to open branches in all local levels, which are designed on the basis of the federal structure. Banks should try to gain trust of more Nepalese people and companies by attracting them to open various types of deposit
account in their bank by providing various services along with opening an account like health insurance, mobile banking, ATM etc. Banks should be responsible to follow such directive and any defiance should be penalized as per the provision in the Nepal Rastra Bank.
includes bank loan & advances, bank total deposit and bank total assets
on economic growth of Nepal. This study relies purely on secondary data and has conducted correlation and multiple regression analysis using panel data of twenty-eight commercial banks during the period of 1995/96 -2016/17. The data are collected from statistical bulletin of NRB and all “A class commercial bank financial reports and national accounts published by CBS. Trend Analysis has been done with the use of Ms-Excel 2019 and descriptive analysis, correlation analysis and multiple regression analysis has been done using SPSS Software Version 20. The empirical results show that bank loan & advances has negative impact on the economic growth of Nepal however the relationship between them is statistically significant. While total bank deposit and total bank assets have positive effects on the economic growth of Nepal though the relation of these two-independent variable with dependent variable seems statistically insignificant. The study implies that the policy makers in Nepal Rastra
Bank should focus their attention more on encouraging Banks to flow their more loan to productive sectors of Nepal which encompasses hydropower, agriculture, tourism, export, small and medium industries, pharmaceuticals, startups, cement and garments etc. that can create more employment opportunities in the country and bank loans should flown less loan to unproductive sectors which includes real estate, outstanding credit, share loan, mortgage . NRB should also encourage “A’’ class commercial banks to increase their total capital through various ways like merger, acquisition, FPO etc. Banks should also be directed to open branches in all local levels, which are designed on the basis of the federal structure. Banks should try to gain trust of more Nepalese people and companies by attracting them to open various types of deposit
account in their bank by providing various services along with opening an account like health insurance, mobile banking, ATM etc. Banks should be responsible to follow such directive and any defiance should be penalized as per the provision in the Nepal Rastra Bank.