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Project Case Study

Strengthening Nepal’s financial sector

Providing technical assistance to the Government of Nepal to help address the current vulnerabilities in the financial sector

There is evidence that Nepal’s financial sector is highly exposed to liquidity stress, which could trigger a financial crisis with significant consequences for the already fragile economy.

In March 2013, DFID Nepal approved a macroeconomic reform project to provide timely high quality technical assistance to key central Government of Nepal agencies to help address the financial sector vulnerabilities.

Project info

Strengthening Nepal's financial sector



  • Government of Nepal

An Adam Smith International team is implementing a financial sector programme, which includes in-depth diagnostic audits of at-risk financial institutions, the provision of training to several hundred civil servants in new international accounting standards, the development of a deposit credit and guarantee system and the provision of hardware and software at the Ministry of Finance to enable it to better manage macroeconomic problems.

The initiative is closely linked to the World Bank Development Policy Credit to strengthen Nepal’s financial sector and the Adam Smith International team is working very closely with both DFID and the World Bank to coordinate external assistance.

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