Financial System and Poverty Alleviation in Nepal

These flashcards cover key vocabulary terms related to the financial developments in Nepal and their impacts on poverty alleviation.

Financial Liberalization

The process of reducing government restrictions on the financial sector, allowing greater access to credit and promoting competition.

Micro-Credit Programs

Targeted financial initiatives aimed at providing small loans to the impoverished, enabling them to engage in income-generating activities.

Rural Banking

Banking services aimed at providing financial resources to individuals in rural areas, where the majority of the poor live.

Poverty Alleviation

Efforts and strategies aimed at reducing the level of poverty, primarily through economic growth and financial inclusion.

Targeted Credit Programs

Financial initiatives designed specifically to provide credit assistance to marginalized groups, often with favorable terms.

Nepal Rastra Bank (NRB)

The central bank of Nepal, which regulates financial institutions and implements monetary policy.

Agricultural Development Bank (ADB/N)

A key financial institution in Nepal focused on providing financial services and credit for agricultural development.

Credit Guarantee Corporation

An institution that provides guarantees for loans issued to promote lending to prospective borrowers, especially from the lower-income brackets.

Co-operatives

Community-based organizations that provide credit and financial services, especially to rural households.

Non-Formal Credit Sources

Informal financial systems, such as family loans, moneylenders, and community groups, used by households unable to access formal banking services.