Finance Sector Reform in Nepal - What Works, What Does not

This publication reviews financial sector reforms in Nepal since initial reform in 1985. The paper provides a comprehensive overview of what policies have been successful, which policies have not been successful, and the reasons for both. Initial reforms were successful, however recent reforms have been less successful due to the nation's complex domestic political situations. The paper suggests how to move forward with reforms in the financial sector, and emphasizes the autonomy of the central bank. Continuous financial sector reform will lead to sustainable development for the country's population.