Nepal - Domestic credit to private sector (% of GDP)

Domestic credit to private sector (% of GDP) in Nepal was 87.85 as of 2020. Its highest value over the past 60 years was 87.85 in 2020, while its lowest value was 1.05 in 1960.

Definition: Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries these claims include credit to public enterprises. The financial corporations include monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.

Source: International Monetary Fund, International Financial Statistics and data files, and World Bank and OECD GDP estimates.

See also:

Year Value
1960 1.05
1961 1.23
1962 1.25
1963 1.23
1964 1.50
1965 1.89
1966 1.79
1967 1.92
1968 2.22
1969 2.41
1970 2.87
1971 3.84
1972 3.52
1973 4.79
1974 4.89
1975 4.41
1976 3.63
1977 4.79
1978 5.70
1979 6.42
1980 8.57
1981 9.19
1982 8.63
1983 8.10
1984 8.49
1985 9.85
1986 10.58
1987 10.45
1988 11.79
1989 13.05
1990 12.81
1991 13.35
1992 13.42
1993 14.57
1994 18.55
1995 22.83
1996 23.20
1997 23.89
1998 28.66
1999 28.88
2000 30.67
2001 29.42
2002 22.87
2003 26.14
2004 27.10
2005 28.73
2006 33.15
2007 37.28
2008 51.65
2009 59.18
2010 54.59
2011 46.32
2012 48.75
2013 50.46
2014 54.47
2015 56.91
2016 69.84
2017 68.56
2018 76.32
2019 78.95
2020 87.85

Development Relevance: Private sector development and investment - tapping private sector initiative and investment for socially useful purposes - are critical for poverty reduction. In parallel with public sector efforts, private investment, especially in competitive markets, has tremendous potential to contribute to growth. Private markets are the engine of productivity growth, creating productive jobs and higher incomes. And with government playing a complementary role of regulation, funding, and service provision, private initiative and investment can help provide the basic services and conditions that empower poor people - by improving health, education, and infrastructure.

Limitations and Exceptions: Credit to the private sector may sometimes include credit to state-owned or partially state-owned enterprises.

Statistical Concept and Methodology: Credit is an important link in money transmission; it finances production, consumption, and capital formation, which in turn affect economic activity. The data on domestic credit provided to the private sector are taken from the financial corporations survey (line 52D) of the International Monetary Fund's (IMF) International Financial Statistics or, when unavailable, from its depository survey (line 32D). The banking sector includes monetary authorities (the central bank) and deposit money banks, as well as other financial corporations where data are available (including institutions that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Assets