Govt Forms High-Level Panel to Explore 'One-Window' Financial Hubs: Banks May Soon Offer Stock Trading and Insurance

KATHMANDU — In what could mark a paradigm shift in Nepal’s financial landscape, the Ministry of Finance has initiated a comprehensive study to evaluate the feasibility of allowing commercial banks to offer stock trading, portfolio management, and insurance services directly through their branch networks.

This ambitious move aims to transform traditional bank branches into "one-window financial hubs," significantly expanding financial inclusion. The Ministry has constituted a specialized study committee coordinated by Dr. Sanjay Acharya, former advisor to the National Planning Commission. The committee’s formation, driven by a ministerial-level decision, is rooted in the government’s newly approved five-year 'Financial Sector Development Strategy.' The Finance Minister officially briefed stakeholders about this development during a meeting of the High-Level Financial Sector Coordination Committee on Thursday.

Market analysts and economic observers view this initiative as a crucial step toward democratizing Nepal's capital market, which has historically been concentrated in urban centers. A primary objective of this policy exploration is to bridge the massive financial literacy gap in rural areas. Currently, residents in remote regions are largely excluded from the secondary market due to limited understanding of share investments and a lack of digital literacy required to navigate online trading systems. By leveraging the extensive, pre-existing rural branch networks of commercial banks to provide brokerage and 'bancassurance' services, the government hopes to bring rural capital into the formal investment fold.

Beyond facilitating stock market access, the committee has been mandated to address structural flaws in rural credit distribution. Historically, the volume of bank loans flowing into rural areas has remained sluggish. More critically, the loans that are disbursed often face high risks of turning into non-performing assets (NPAs) because borrowers lack the necessary business acumen. To mitigate this, the study team is tasked with designing a new credit modality that inherently bundles bank financing with compulsory entrepreneurship training, ensuring that borrowed capital translates into sustainable local enterprises rather than bad debt.

Furthermore, the government is looking to reshape how retail depositors earn returns on their savings. With standard savings accounts frequently offering yields that barely outpace inflation, the newly formed committee will explore mechanisms allowing rural depositors to opt for professional portfolio management. Under this proposed model, banks would deploy their own in-house financial experts to manage equity portfolios on behalf of their clients, theoretically exposing ordinary depositors to the higher returns of the stock market within a safely regulated framework.

To ensure the study is comprehensive and aligns with regulatory standards, the committee brings together key policymakers and subject matter experts. Alongside Coordinator Dr. Acharya, the panel includes Mahesh Acharya, Joint Secretary of the Financial Sector Coordination Division at the Finance Ministry; Ramu Poudel, Executive Director of the Nepal Rastra Bank; and financial expert Mausami Shrestha.

If the committee's forthcoming recommendations are implemented, it will not only redefine the operational scope of Nepali banks but could also trigger unprecedented growth in the domestic insurance and stock markets by unlocking billions in untapped rural capital.