Nepal Third Financial Sector Stability Credit DPC3

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The development objective of Third Financial Sector Stability Development Policy Credit Project (DPC3) for Nepal is to support the medium-term reform program for the financial sector initiated by the Nepalese authorities to reduce the vulnerability of the banking sector and increase its transparency. The objective of the credit is to support the financial sector medium-term reform program initiated by the Nepalese authorities to reduce the vulnerability of the banking sector and increase its transparency. This program has four pillars: (a) enhancing financial sector development, (b) restructuring and consolidating the financial system, (c) strengthening the legal and regulatory framework, and (d) enhancing the governance and transparency of the banking system. The second phase of the government’s financial sector reform program (2014–2017), focuses on reforms designed to achieve two overarching policy objectives: first, to ensure the stability of the financial system by improving the quality of regulation, supervision, transparency, and governance to levels closer to international norms, and second, to start improving access to formal financial services. The programmatic series of DPCs complements the GoN’s program and is grounded in analytical work carried out by the World Bank, International Monetary Fund (IMF), U.K. Department for International Development (DFID), and the 2014 Financial Sector Assessment Program (FSAP).