Economic Freedom of the World Country Audit: Sound Money and Credit Market Regulations in Nepal

This working paper analyses Nepal’s performance in the “Sound Money and Credit Market Regulations” section of the Economic Freedom of the World Report. It provides a brief overview of Nepal’s capital market, monetary policy and credit regulations. Based on the analysis the working paper suggests agendas for reform including but not limited to changing the loan loss provisioning framework, blacklisting guidelines, and the use of alternative mechanisms for facilitating credit access.