Assets Of Commercial Bank In Nepal

Assets Of Commercial Bank In Nepal

The aim of this project is to assess the level of non-performing assets and its repercussions in overall financial stability of commercial bank in Nepal through the comparison between proper Nepali bank and the joint venture bank.

The specific objectives are :

To determine the extent to which commercial banks face potential financial instability because of non-performing assets.

To identify the mechanisms by which commercial banks control non-performing assets.

To identify successful and unsuccessful measures in relation to recover and mobilization of non-performing assets of commercial bank.

To find out Whether or not Nepalese Commercial Banks are following rules and regulations of NRB (Nepal Rastra Bank) regarding their lending, especially to maintain the provision for NPA?

To enumerate and examine the level of NPA to total assets, total lending and total deposit of these two commercial banks.

To identify the internal and external factors affecting on the growth of NPA?

To identify the effects of Non-Performing Assets on ROA and ROE of these two commercial banks.

To identify which bank has high level of non- performing assets

To make recommendations as to how commercial banks might improve their efforts in relation to minimization of non-performing assets.

These objectives will be achieved by addressing the following research questions:

Which bank, proper nepali bank or joint venture bank, is actively seeking to minimize risks of non-performing assets?

When did non-performing assets start showing impacts in the bank?

What resources do the banks devote to control non-performing assets?

Who decides on this resource allocation?

How do banks seek to control non-performing assets?

Is non-performing asset increasing amongst banks? What is the degree of increment of non-performing asset in proper Nepali commercial bank and joint venture bank?

What percentage of total assets and total lending is occupying by NPAs of Nepalese commercial banks?

How does non-performing assets effects on return on total assets (ROA) and shareholders’ equity (ROE).