Nepal is one of the poorest countries in the world for many reasons.
These include geographical, topographical, social and economical problems.
International and developed countries assist Nepal to alleviate those constrains. Among this, financial constrains are a major one because all economic activities consist of both goods and money transitions in a modern economy.
Nepal had nearly adequate financial institutions compared with its size. The major problems of their institutions are lack of manpower and adequate business procedures. NGOs play vital role to assist the institutions. NGO's “mini-banks” play sufficient role to alleviate poverty in rural area. The main focus of this report is Nepal's financial institutions and NGO's activities. The main problem of mini-bank is shortage of operation funds because the initial fund must come from private sources.
Japan can assist in many ways to reform the financial activities so that the institutions can work more efficiently. These are, for example, transfer of evaluation know-how and monitoring of loans, improve routine business procedures, training methods for junior and senior bankers and clerks. One of main purposes of this training is how a new comer can get enough skills as soon as possible.
