ROLE OF FINANCIAL INSTITUTIONS IN PROMOTING SUSTAINABLE DEVELOPMENT GOALS

Abstract

This study investigates the role of financial institutions in promoting sustainable development goals (SDGs) in Nepal focusing on five major banks: Nepal Investment Mega Bank Limited (NIMB), Nabil Bank Limited (NBL), Standard Chartered Bank Nepal Limited (SCBNL), Himalayan Bank Limited (HBL) and Nepal Bank Limited (NBL). It examines the impact of investments in Poverty Elimination Funds (PEF), Funds for Health Programs (FFHP), Educational Loans (EL), R&D Investments (RDI), and Clean Energy Investments (CEI) on the SDG Index (SDGI). Using panel data from 2013/14 to 2022/23 and employing both descriptive and inferential statistics, the study assesses the banks' contributions towards achieving SDGs. Descriptive statistics reveal considerable variability in investments, with PEF and EL showing high dispersion, while SDGI has a more clustered distribution. Correlation analysis highlights strong positive relationships between FFHP, EL, RDI, CEI, and SDGI, indicating that increased investments in these areas are associated with better SDG outcomes. Regression analysis further confirms that FFHP, EL, RDI, and CEI positively impact SDGI, while PEF shows no significant effect. These findings underscore the significant role of FFHP, EL, RDI and CEI in advancing SDGs, suggesting that PEF may need reassessment to enhance its effectiveness.