Nepal: Financial institutions development, efficiency

The latest value from 2021 is 0.602 index points, an increase from 0.598 index points in 2020. In comparison, the world average is 0.585 index points, based on data from 178 countries. Historically, the average for Nepal from 1980 to 2021 is 0.572 index points. The minimum value, 0.327 index points, was reached in 2003 while the maximum of 0.697 index points was recorded in 2005. See the global rankings or world map for that indicator or use the country comparator to compare trends over time.

Definition: Measures the efficiency of financial institutions. Constructed using the Principal Component methodology using the following variables: Net interest margin, Lending-deposits spread, Non-interest income to total income, Overhead costs to total assets, Return on assets, and Return on equity. See Svirydzenka, Katsiaryna (IMF, 2016) for more detail.