The development of any country largely depends upon its economic development. Thus, the primary goal of any nation, including Nepal is a developing country is trying to embark upon the path of economic growth rate and developing all sectors of economy. Even though, the process of economic development depends upon various factors, however economist are now convinced that capital formation and its proper utilization plays a paramount role.
“The increase in capitals has always been a sort of prime mover in the process materials growth and the rate of capital formation has been the principal variable in sitting the overall pace of economic development”. The network good financial organization has great bearing the system of country in this regard. It collects scattered financial resources from the masses and invests them among those engaged in commercial and economic activities of the country. In this way the financial institutions provide savages highly liquid divisible assets at a lowest risk while the investors receive a large pool of resources. Financial institutions have catalytic role in the process of economic development.
Now a day’s, bank in different countries has been found to providing service to the people as well as strengthening the whole country’s economy. In present days, various types of banks are established such as Industrial bank, Commercial bank, Agriculture bank, Joint stock bank, Co-operative bank and Development bank are functioning in Nepal. Modern banks are more advanced than the ancient ones. This is because of the growth in population, changes occurred in the industrial field and trade, the beginning of competitive age and changes in the ideology of people and due to the dependence on each other. The only commercial banks operating since the last three decades in Nepal are Nepal Bank Limited and Rastriya Banijya Bank. Today there are altogether 17 commercial banks functioning in the country.
Bank has been occupying a vital role in the national economical and development framework due to collection of capitals through savings from citizens; make investment in different enterprises, mobilizes the funds. Banking industries are serving the country in reducing poverty, raising employment opportunities and thereby developing the society and country as a whole. The pace of development of the country cropped up as a bank and its activities gradually developed.
