Nepal

When YouthSave began, Nepal’s financial sector consisted of 29 commercial banks, 80 development banks, 79 finance companies, and a number of microfinance development banks (MFDBs), financial cooperatives and financial intermediary non-governmental organizations. According to Nepal Rastra Bank, which was the country’s central bank and regulatory agency, the total numbers of financial institutions in Nepal had increased from only two in 1980 to 265 in 2012, and progressive efforts continued to be made requiring banks—private and public—to direct a certain percentage of their loans to low-income households and small businesses. Still, about half of Nepal’s households did not have access to formal financial services at the beginning of the YouthSave project and only 26 percent of people had a bank account. While even fewer youth had access to financial services, children’s clubs were a potential channel for improving financial access and capability. These clubs were found across the country, and were a venue for youth between 10 to 18 years of age to engage with others on social issues such as child labor, discrimination, HIV/AIDS, and child marriage.

See the Nepal Country Assessment for Youth Development Accounts from the Center for Social Development here.

Financial Partner: Bank of Kathmandu (BoK)

Founded in 1995, Bank of Kathmandu Ltd. (BOK) has national representation when YouthSave began, with 37 branches and over 250 agency outlets in 54 of Nepal’s 75 districts. Its number of branches in the Western and Far Western provinces, Nepal’s most marginalized regions, was among the highest of any Nepali bank. The Bank’s campaign to inculcate a habit of savings among Nepalis, particularly in rural areas, led to the provision of various deposit products, such as Laghu Muddati (Micro Fixed Deposit), Laghu Bachat (Micro Savings), Nava Kopila Bachat Khata (New Buds Savings) and Gramin Mahila Bachat Khata (Rural Women Savings Account). When we partnered the bank had set out to focus on enhancing access to financial services supported by a robust MIS (management information system), efficient management of human resources, and strategic partnerships, while continuing with all CSR initiatives, which were consistent with the Bank’s motto “We make your life easier.” To learn more about BoK now visit: www.bok.com.np.

Research Partner: New Era

Established in 1971, New Era is a private institution specializing in development research, with expertise in education, population health, labor force, and equity studies. Its main goal is to provide an independent Nepalese perspective in the design, implementation, and assessment of development policies and programs by employing a wide range of quantitative, qualitative, and participatory rural appraisal methodologies. When we partnered, it has experience carrying out feasibility studies, baseline surveys, impact studies, case studies, participatory research, and needs assessments. New Era also conducted four consecutive national demographic and health surveys (1991, 1996, 2001, and 2006) for the Nepalese Ministry of Health and Population. Core staff were experienced field researchers from diverse academic backgrounds, including agriculture, communication, computer, demography, economics, education, forestry, geography, natural resources, health and nutrition, rural sociology, and rural development. To learn more about New Era today visit: www.newera.com.np.