The financial attributes for financial literacy of commercial banks in nepal

Abstract

This study examines the influence of key financial attributes such as, Financial Attitude (FA), Financial Behavior (FB) and Financial Knowledge (FK) on the Level of Financial Literacy (LFL) among commercial bank customers in Nepal. Using a structured questionnaire and responses from 2,000 participants, the study employs correlation and multiple regression analysis through SPSS version 29 to assess the strength and significance of these relationships. The correlation matrix reveals that all independent variables Financial Attitude (FA), Financial Behavior (FB) and Financial Knowledge (FK) are positively and significantly correlated with Level of Financial Literacy (LFL), suggesting that stronger financial attitude, better behavior, and increased knowledge are associated with higher levels of financial literacy. The regression analysis shows that Financial Behavior (FB) has the highest predictive power (β = 0.368), followed by Financial Attitude (FA) (β = 0.321) and Financial Knowledge (FK) (β = 0.176), with all predictors being statistically significant at the 1% level (p < 0.001). The model demonstrates a strong fit, with an R-value of 0.692 and an R² of 0.478, indicating that approximately 47.8% of the variation in financial literacy is explained by these three variables. The ANOVA results confirm the overall significance of the model (F = 610.370, p = 0.001). These findings suggest that financial behavior plays the most influential role in shaping financial literacy, followed by financial attitude and financial knowledge. The study offers important insights for policymakers, educators, and financial institutions aiming to improve financial literacy through targeted behavioral, attitudinal, and educational strategies. Keywords: Level of Financial Literacy (LFL), Financial Knowledge (FK), Financial Attitudes (FA) and Financial Behaviour (FB).