RISK AND FINANCIAL STABILITY OF SELECTED BANKS IN NEPAL

Abstract

This research aims to critically analyze and compare the risk and reliability of three prominent banks in Nepal: Agriculture Development Bank Limited (ADBL), Everest Bank Limited (EBL), and Prabhu Commercial Bank Limited (PRABHU). The study is pivotal in understanding the financial stability and risk management strategies of these institutions in a developing country context. The objective of this research is to quantify and compare the risks associated with the banking operations of these institutions. The study uses a range of financial variables such as cash and bank balances, non-performing loans, and net interest income as indicators of risk and financial health. The methodology employed is a quantitative for financial data analysis. Further Descriptive research design is used to describe the phenomena of different variables. The findings of this study reveal varied levels of risk and reliability among the three banks. The analysis demonstrates how different financial management strategies and market positions influence the risk profiles of these banks. The study uncovers critical insights into the risk management practices and financial health of these banks, highlighting areas of strength and vulnerability. The implications of this research are far-reaching. For policymakers and regulatory bodies, it provides a framework to evaluate and enhance the risk management practices in the banking sector. For investors and customers, it offers an informed perspective on the reliability and stability of these banks. The study also contributes to the academic understanding of banking risks in the context of a developing economy like Nepal. This research presents a comprehensive risk and reliability analysis of three major Nepalese banks, offering valuable insights for stakeholders and contributing to the broader discourse on financial risk management in emerging economies.