NRB Assistant Director cheat sheet

Nepal Rastra Bank was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955, and began operations as the central bank in 1956, taking over note issuance from the government.

Nepal's currency is the Nepalese rupee (NPR), divided into 100 paisa; the rupee was decimalised in 1956 and the banknote series is issued by NRB in denominations from Rs 5 to Rs 1000.

The Nepal Rastra Bank Act 2058 (2002) is the governing statute of the central bank; it defines NRB's objectives as price stability, external sector stability and financial sector stability, and provides for a Board of Directors.

Nepal is a member of the IMF (joined 1961), the World Bank (1961), the Asian Development Bank (1966) and SAARC; NRB's Governor is Nepal's IMF Governor and the Finance Secretary is the Alternate Governor.

The Nepalese financial sector is bank-dominated: commercial banks (Class A), development banks (Class B), finance companies (Class C) and microfinance institutions (Class D) are licensed and classified by NRB under the Banks and Financial Institutions Act 2073 (2017).

Nepal's fiscal year runs from Shrawan 1 to Asar end (mid-July to mid-July); the annual budget is presented to the Federal Parliament by the Finance Minister, usually in Jestha (May-June).

Nepal is a federal republic under the Constitution of Nepal 2072 (2015), with seven provinces and 753 local units; the constitution lists the central bank's currency and monetary powers as federal competences.

Nepal's main export and remittance corridors are India (open border, pegged exchange rate), the Gulf states and Malaysia; remittances are Nepal's largest single source of foreign exchange, exceeding merchandise exports.

NRB's primary objective is price stability; secondary objectives include external sector stability, financial stability and support for output. The monetary policy for each fiscal year is announced by the Governor, usually in July.

The main operating instrument is the policy repo rate (the rate at which NRB lends to banks against government securities). The interest rate corridor is bounded above by the standing liquidity facility (SLF) rate and below by the deposit collection rate.

Open market operations use repo, reverse repo, outright purchase/sale of government securities and NRB bonds (Deposit Collection Instruments) to manage liquidity; SLF and deposit collection are the standing facilities.

The cash reserve ratio (CRR) is the share of deposits held as balances with NRB and earns no interest; the statutory liquidity ratio (SLR) is the minimum share of deposits held in specified liquid assets, mainly government securities.

NRB manages the exchange rate against the Indian rupee under a peg (approximately Rs 1.6 = INR 1, with a narrow band); the peg anchors imported inflation and constrains independent interest-rate setting.

Foreign exchange reserves adequacy is judged against import cover (months of goods and services imports) and against short-term external debt; NRB publishes reserves weekly.

The money supply aggregates are M1 (currency plus demand deposits) and M2 (M1 plus time deposits); broad money growth is targeted in the monetary policy programme as an intermediate indicator.

Seigniorage and the inflation tax: government borrowing directly from NRB (ways and means advances) is capped by law; deficit financing through NRB creates reserve money growth and inflationary pressure.

Transmission channels in Nepal are weak because of excess liquidity, administered lending rates and a shallow bond market; NRB therefore uses quantitative measures (CRR, SLR, directed lending) alongside the policy rate.

GDP by expenditure: Y = C + I + G + (X - M). Nominal GDP valued at current prices; real GDP at constant base-year prices. GDP deflator = nominal/real x 100.

Growth rate = (real GDP in t - real GDP in t-1) / real GDP in t-1 x 100. Nepal's economy is service- and remittance-driven; agriculture remains a large employer but a small share of GDP.

Inflation measured by consumer price index: CPI = (cost of basket at current prices / cost at base prices) x 100; inflation rate = (CPI t - CPI t-1)/CPI t-1 x 100. Nepal's CPI is published by the Nepal Rastra Bank and the National Statistics Office.

Fiscal deficit = total expenditure - total revenue (excluding grants); primary deficit = fiscal deficit - interest payments. Deficit financing sources: external loans/grants, domestic borrowing and NRB advances.

Money multiplier = 1/reserve ratio in the simple model; broadly, M2 = money multiplier x reserve money (high-powered money). Credit multiplier effects explain how deposit creation expands broad money.

Phillips curve: short-run inverse relation between inflation and unemployment; long-run curve is vertical at the natural rate. Cost-push versus demand-pull inflation require different policy responses.

Balance of payments: current account (goods, services, income, transfers) + capital/financial account + errors and omissions = change in reserves. A current account deficit must be financed by capital inflows or reserve drawdown.

Purchasing power parity: exchange rate adjusts so identical baskets cost the same; interest rate parity links interest differentials to expected exchange-rate changes. Nepal's peg to the Indian rupee is a real-world application of exchange-rate anchoring.

Basel III capital: Common Equity Tier 1 >= 4.5% of risk-weighted assets, Tier 1 >= 6%, total capital >= 8%, plus a capital conservation buffer of 2.5% and a countercyclical buffer of 0-2.5%.

Risk-weighted assets: credit risk (standardised approach uses external ratings and regulatory risk weights), market risk and operational risk (basic indicator or standardised approach).

NRB's regulatory capital framework sets minimum capital adequacy ratios above Basel minima and prescribes minimum paid-up capital by class of BFIs, revised periodically.

KYC/AML: banks must identify customers, verify identity, monitor transactions, report suspicious transactions to the Financial Information Unit (FIU) and maintain records; Nepal's AML regime is under the Prevention of Money Laundering and Promotion of Fiscal Discipline Act.

Deposit insurance: the Deposit and Credit Guarantee Fund insures deposits up to a prescribed limit per depositor per institution; the fund also provides credit guarantees for priority sectors.

Priority-sector and directed lending: NRB requires BFIs to lend a minimum share of loans to productive sectors (agriculture, energy, tourism, SMEs) and prescribes concessional lending windows.

Non-performing loans: a loan is classified as pass, watchlist, substandard, doubtful or bad in NRB's loan-loss classification; provisioning rates rise with the classification category.

Prompt corrective action and licensing: NRB may restrict business, require recapitalisation, suspend directors or revoke a licence for breaches of the BFIA, NRB Act and prudential regulations.

Supervisory tools: off-site surveillance (periodic returns and ratios), on-site inspections, thematic reviews, stress testing and enforcement actions (warning, fine, business restriction, licence revocation).

CAMELS-style assessment: Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. Composite rating drives supervisory intensity.

Liquidity ratios: liquidity coverage ratio (HQLA / net cash outflows over 30 days >= 100%) and net stable funding ratio (available stable funding / required stable funding >= 100%).

Stress testing scenarios: credit shock (rise in NPLs), interest-rate shock, exchange-rate shock and liquidity shock; results inform capital planning and macroprudential measures.

Systemic risk and macroprudential tools: countercyclical capital buffers, loan-to-value and debt-service-to-income caps, sectoral exposure limits and reserve requirements.

Financial Stability Report: NRB publishes periodic assessments of credit growth, asset quality, liquidity, capital and interconnectedness, with a financial stability map and risk outlook.

Contagion and interconnectedness: interbank exposures, common lenders and concentrated deposit bases transmit shocks; supervisors map large exposures and related-party lending.

Deposit protection and resolution: deposit insurance, early intervention, bridge banks and orderly liquidation protect depositors and limit moral hazard; Nepal's framework is set by the NRB Act and BFIA.

Accounting equation: Assets = Liabilities + Equity. Double entry: every transaction debits one account and credits another for equal amounts.

Trial balance: total debits = total credits. Income statement: profit = revenue - expenses. Balance sheet: assets = liabilities + equity at a point in time.

Accrual versus cash basis: accrual recognises revenue when earned and expenses when incurred; cash basis recognises on receipt or payment.

Depreciation methods: straight line = (cost - residual value)/useful life; reducing balance = carrying amount x rate. Depreciation is a non-cash expense added back in cash-flow statements.

Financial ratios: current ratio = current assets/current liabilities; debt-equity = total debt/equity; ROA = net income/total assets; ROE = net income/equity; NIM = net interest income/earning assets.

Time value of money: future value = PV(1+r)^n; present value = FV/(1+r)^n; NPV = sum of discounted cash flows - initial investment; IRR is the discount rate at which NPV = 0.

Descriptive statistics: mean, median, mode; variance = sum of squared deviations/(n-1) for a sample; standard deviation = square root of variance; coefficient of variation = SD/mean.

Regression and correlation: y = a + bx, where b = covariance(x,y)/variance(x); correlation coefficient r ranges from -1 to +1 and measures linear association, not causation.

नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन वर्ण गरी ४४ वर्ण हुन्छन्; स्वरका भेद: ह्रस्व, दीर्घ, प्लुत।

शब्दभेदका मुख्य प्रकार: नाम, सर्वनाम, विशेषण, क्रियायोगी, क्रियापद, नामयोगी, संयोजक, विस्मयादिबोधक र निपात।

वाक्यमा कर्ता, कर्म र क्रियापदको अन्वय (agreement) मिलाइनुपर्छ; नेपालीमा क्रियापद कर्ताको पुरुष र वचनअनुसार परिवर्तन हुन्छ।

कारकका आठ भेद: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन; विभक्ति चिह्नले कारक पहिचान गराउँछ।

कालका तीन मुख्य भेद: वर्तमान, भूत र भविष्यत्; पक्ष (aspect) का रूप: सामान्य, अपूर्ण र पूर्ण।

पद्यमा लय, छन्द र अलङ्कार; गद्यमा वाक्य संरचना र अनुच्छेदको एकता महत्त्वपूर्ण हुन्छ। शब्दशक्ति: अभिधा, लक्षणा र व्यञ्जना।

लेखनमा हलन्त, शिरोरेखा, स्पर्श र अक्षर जोडाइको शुद्धता; आधिकारिक पत्रमा मिति, सम्बोधन, विषय र हस्ताक्षर अनिवार्य हुन्छन्।

पारिभाषिक शब्दावलीमा अङ्ग्रेजी प्राविधिक शब्दको नेपाली समानान्तर प्रयोग गरिन्छ, जस्तै बैंक, ब्याज, निक्षेप, कर्जा, विनिमय दर।

Nepal's administrative law framework includes the Civil Service Act 2049 (1993), the Civil Service Rules, the Financial Procedures and Fiscal Responsibility Act 2076 (2019) and the Good Governance (Management and Operation) Act 2064 (2007).

The Commission for the Investigation of Abuse of Authority (CIAA) is a constitutional anti-corruption body; the National Vigilance Centre coordinates preventive vigilance across public bodies.

The Right to Information Act 2064 (2007) requires public bodies to proactively disclose information and to respond to requests within 15 days (extendable in specified cases).

Administrative decisions must satisfy legality, rationality and procedural fairness; natural justice requires notice, an opportunity to be heard and an unbiased decision-maker.

Public procurement is governed by the Public Procurement Act 2063 (2007) and its regulations: open competitive bidding is the default method, with thresholds and approval authorities prescribed.

The Financial Procedures and Fiscal Responsibility Act requires the budget to be presented with a medium-term expenditure framework and sets limits on domestic borrowing and guarantees.

English usage for administration: formal register, passive voice for impersonal rules, precise modals (shall = obligation, may = discretion), and parallel structure in lists and headings.

Delegated legislation is valid only within the powers conferred by the parent Act; ultra vires acts are void, and administrative tribunals review decisions for jurisdiction, procedure and error of law.

Nepal Rastra Bank was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955, and began operations as the central bank in 1956, taking over note issuance from the government.

Nepal's currency is the Nepalese rupee (NPR), divided into 100 paisa; the rupee was decimalised in 1956 and the banknote series is issued by NRB in denominations from Rs 5 to Rs 1000.

The Nepal Rastra Bank Act 2058 (2002) is the governing statute of the central bank; it defines NRB's objectives as price stability, external sector stability and financial sector stability, and provides for a Board of Directors.

Nepal is a member of the IMF (joined 1961), the World Bank (1961), the Asian Development Bank (1966) and SAARC; NRB's Governor is Nepal's IMF Governor and the Finance Secretary is the Alternate Governor.

The Nepalese financial sector is bank-dominated: commercial banks (Class A), development banks (Class B), finance companies (Class C) and microfinance institutions (Class D) are licensed and classified by NRB under the Banks and Financial Institutions Act 2073 (2017).

Nepal's fiscal year runs from Shrawan 1 to Asar end (mid-July to mid-July); the annual budget is presented to the Federal Parliament by the Finance Minister, usually in Jestha (May-June).

Nepal is a federal republic under the Constitution of Nepal 2072 (2015), with seven provinces and 753 local units; the constitution lists the central bank's currency and monetary powers as federal competences.

Nepal's main export and remittance corridors are India (open border, pegged exchange rate), the Gulf states and Malaysia; remittances are Nepal's largest single source of foreign exchange, exceeding merchandise exports.

NRB's primary objective is price stability; secondary objectives include external sector stability, financial stability and support for output. The monetary policy for each fiscal year is announced by the Governor, usually in July.

The main operating instrument is the policy repo rate (the rate at which NRB lends to banks against government securities). The interest rate corridor is bounded above by the standing liquidity facility (SLF) rate and below by the deposit collection rate.

Open market operations use repo, reverse repo, outright purchase/sale of government securities and NRB bonds (Deposit Collection Instruments) to manage liquidity; SLF and deposit collection are the standing facilities.

The cash reserve ratio (CRR) is the share of deposits held as balances with NRB and earns no interest; the statutory liquidity ratio (SLR) is the minimum share of deposits held in specified liquid assets, mainly government securities.

NRB manages the exchange rate against the Indian rupee under a peg (approximately Rs 1.6 = INR 1, with a narrow band); the peg anchors imported inflation and constrains independent interest-rate setting.

Foreign exchange reserves adequacy is judged against import cover (months of goods and services imports) and against short-term external debt; NRB publishes reserves weekly.

The money supply aggregates are M1 (currency plus demand deposits) and M2 (M1 plus time deposits); broad money growth is targeted in the monetary policy programme as an intermediate indicator.

Seigniorage and the inflation tax: government borrowing directly from NRB (ways and means advances) is capped by law; deficit financing through NRB creates reserve money growth and inflationary pressure.

Transmission channels in Nepal are weak because of excess liquidity, administered lending rates and a shallow bond market; NRB therefore uses quantitative measures (CRR, SLR, directed lending) alongside the policy rate.

GDP by expenditure: Y = C + I + G + (X - M). Nominal GDP valued at current prices; real GDP at constant base-year prices. GDP deflator = nominal/real x 100.

Growth rate = (real GDP in t - real GDP in t-1) / real GDP in t-1 x 100. Nepal's economy is service- and remittance-driven; agriculture remains a large employer but a small share of GDP.

Inflation measured by consumer price index: CPI = (cost of basket at current prices / cost at base prices) x 100; inflation rate = (CPI t - CPI t-1)/CPI t-1 x 100. Nepal's CPI is published by the Nepal Rastra Bank and the National Statistics Office.

Fiscal deficit = total expenditure - total revenue (excluding grants); primary deficit = fiscal deficit - interest payments. Deficit financing sources: external loans/grants, domestic borrowing and NRB advances.

Money multiplier = 1/reserve ratio in the simple model; broadly, M2 = money multiplier x reserve money (high-powered money). Credit multiplier effects explain how deposit creation expands broad money.

Phillips curve: short-run inverse relation between inflation and unemployment; long-run curve is vertical at the natural rate. Cost-push versus demand-pull inflation require different policy responses.

Balance of payments: current account (goods, services, income, transfers) + capital/financial account + errors and omissions = change in reserves. A current account deficit must be financed by capital inflows or reserve drawdown.

Purchasing power parity: exchange rate adjusts so identical baskets cost the same; interest rate parity links interest differentials to expected exchange-rate changes. Nepal's peg to the Indian rupee is a real-world application of exchange-rate anchoring.

Basel III capital: Common Equity Tier 1 >= 4.5% of risk-weighted assets, Tier 1 >= 6%, total capital >= 8%, plus a capital conservation buffer of 2.5% and a countercyclical buffer of 0-2.5%.

Risk-weighted assets: credit risk (standardised approach uses external ratings and regulatory risk weights), market risk and operational risk (basic indicator or standardised approach).

NRB's regulatory capital framework sets minimum capital adequacy ratios above Basel minima and prescribes minimum paid-up capital by class of BFIs, revised periodically.

KYC/AML: banks must identify customers, verify identity, monitor transactions, report suspicious transactions to the Financial Information Unit (FIU) and maintain records; Nepal's AML regime is under the Prevention of Money Laundering and Promotion of Fiscal Discipline Act.

Deposit insurance: the Deposit and Credit Guarantee Fund insures deposits up to a prescribed limit per depositor per institution; the fund also provides credit guarantees for priority sectors.

Priority-sector and directed lending: NRB requires BFIs to lend a minimum share of loans to productive sectors (agriculture, energy, tourism, SMEs) and prescribes concessional lending windows.

Non-performing loans: a loan is classified as pass, watchlist, substandard, doubtful or bad in NRB's loan-loss classification; provisioning rates rise with the classification category.

Prompt corrective action and licensing: NRB may restrict business, require recapitalisation, suspend directors or revoke a licence for breaches of the BFIA, NRB Act and prudential regulations.

Supervisory tools: off-site surveillance (periodic returns and ratios), on-site inspections, thematic reviews, stress testing and enforcement actions (warning, fine, business restriction, licence revocation).

CAMELS-style assessment: Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. Composite rating drives supervisory intensity.

Liquidity ratios: liquidity coverage ratio (HQLA / net cash outflows over 30 days >= 100%) and net stable funding ratio (available stable funding / required stable funding >= 100%).

Stress testing scenarios: credit shock (rise in NPLs), interest-rate shock, exchange-rate shock and liquidity shock; results inform capital planning and macroprudential measures.

Systemic risk and macroprudential tools: countercyclical capital buffers, loan-to-value and debt-service-to-income caps, sectoral exposure limits and reserve requirements.

Financial Stability Report: NRB publishes periodic assessments of credit growth, asset quality, liquidity, capital and interconnectedness, with a financial stability map and risk outlook.

Contagion and interconnectedness: interbank exposures, common lenders and concentrated deposit bases transmit shocks; supervisors map large exposures and related-party lending.

Deposit protection and resolution: deposit insurance, early intervention, bridge banks and orderly liquidation protect depositors and limit moral hazard; Nepal's framework is set by the NRB Act and BFIA.

Accounting equation: Assets = Liabilities + Equity. Double entry: every transaction debits one account and credits another for equal amounts.

Trial balance: total debits = total credits. Income statement: profit = revenue - expenses. Balance sheet: assets = liabilities + equity at a point in time.

Accrual versus cash basis: accrual recognises revenue when earned and expenses when incurred; cash basis recognises on receipt or payment.

Depreciation methods: straight line = (cost - residual value)/useful life; reducing balance = carrying amount x rate. Depreciation is a non-cash expense added back in cash-flow statements.

Financial ratios: current ratio = current assets/current liabilities; debt-equity = total debt/equity; ROA = net income/total assets; ROE = net income/equity; NIM = net interest income/earning assets.

Time value of money: future value = PV(1+r)^n; present value = FV/(1+r)^n; NPV = sum of discounted cash flows - initial investment; IRR is the discount rate at which NPV = 0.

Descriptive statistics: mean, median, mode; variance = sum of squared deviations/(n-1) for a sample; standard deviation = square root of variance; coefficient of variation = SD/mean.

Regression and correlation: y = a + bx, where b = covariance(x,y)/variance(x); correlation coefficient r ranges from -1 to +1 and measures linear association, not causation.

नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन वर्ण गरी ४४ वर्ण हुन्छन्; स्वरका भेद: ह्रस्व, दीर्घ, प्लुत।

शब्दभेदका मुख्य प्रकार: नाम, सर्वनाम, विशेषण, क्रियायोगी, क्रियापद, नामयोगी, संयोजक, विस्मयादिबोधक र निपात।

वाक्यमा कर्ता, कर्म र क्रियापदको अन्वय (agreement) मिलाइनुपर्छ; नेपालीमा क्रियापद कर्ताको पुरुष र वचनअनुसार परिवर्तन हुन्छ।

कारकका आठ भेद: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन; विभक्ति चिह्नले कारक पहिचान गराउँछ।

कालका तीन मुख्य भेद: वर्तमान, भूत र भविष्यत्; पक्ष (aspect) का रूप: सामान्य, अपूर्ण र पूर्ण।

पद्यमा लय, छन्द र अलङ्कार; गद्यमा वाक्य संरचना र अनुच्छेदको एकता महत्त्वपूर्ण हुन्छ। शब्दशक्ति: अभिधा, लक्षणा र व्यञ्जना।

लेखनमा हलन्त, शिरोरेखा, स्पर्श र अक्षर जोडाइको शुद्धता; आधिकारिक पत्रमा मिति, सम्बोधन, विषय र हस्ताक्षर अनिवार्य हुन्छन्।

पारिभाषिक शब्दावलीमा अङ्ग्रेजी प्राविधिक शब्दको नेपाली समानान्तर प्रयोग गरिन्छ, जस्तै बैंक, ब्याज, निक्षेप, कर्जा, विनिमय दर।

Nepal's administrative law framework includes the Civil Service Act 2049 (1993), the Civil Service Rules, the Financial Procedures and Fiscal Responsibility Act 2076 (2019) and the Good Governance (Management and Operation) Act 2064 (2007).

The Commission for the Investigation of Abuse of Authority (CIAA) is a constitutional anti-corruption body; the National Vigilance Centre coordinates preventive vigilance across public bodies.

The Right to Information Act 2064 (2007) requires public bodies to proactively disclose information and to respond to requests within 15 days (extendable in specified cases).

Administrative decisions must satisfy legality, rationality and procedural fairness; natural justice requires notice, an opportunity to be heard and an unbiased decision-maker.

Public procurement is governed by the Public Procurement Act 2063 (2007) and its regulations: open competitive bidding is the default method, with thresholds and approval authorities prescribed.

The Financial Procedures and Fiscal Responsibility Act requires the budget to be presented with a medium-term expenditure framework and sets limits on domestic borrowing and guarantees.

English usage for administration: formal register, passive voice for impersonal rules, precise modals (shall = obligation, may = discretion), and parallel structure in lists and headings.

Delegated legislation is valid only within the powers conferred by the parent Act; ultra vires acts are void, and administrative tribunals review decisions for jurisdiction, procedure and error of law.

Nepal Rastra Bank was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955, and began operations as the central bank in 1956, taking over note issuance from the government.

Nepal's currency is the Nepalese rupee (NPR), divided into 100 paisa; the rupee was decimalised in 1956 and the banknote series is issued by NRB in denominations from Rs 5 to Rs 1000.

The Nepal Rastra Bank Act 2058 (2002) is the governing statute of the central bank; it defines NRB's objectives as price stability, external sector stability and financial sector stability, and provides for a Board of Directors.

Nepal is a member of the IMF (joined 1961), the World Bank (1961), the Asian Development Bank (1966) and SAARC; NRB's Governor is Nepal's IMF Governor and the Finance Secretary is the Alternate Governor.

The Nepalese financial sector is bank-dominated: commercial banks (Class A), development banks (Class B), finance companies (Class C) and microfinance institutions (Class D) are licensed and classified by NRB under the Banks and Financial Institutions Act 2073 (2017).

Nepal's fiscal year runs from Shrawan 1 to Asar end (mid-July to mid-July); the annual budget is presented to the Federal Parliament by the Finance Minister, usually in Jestha (May-June).

Nepal is a federal republic under the Constitution of Nepal 2072 (2015), with seven provinces and 753 local units; the constitution lists the central bank's currency and monetary powers as federal competences.

Nepal's main export and remittance corridors are India (open border, pegged exchange rate), the Gulf states and Malaysia; remittances are Nepal's largest single source of foreign exchange, exceeding merchandise exports.

NRB's primary objective is price stability; secondary objectives include external sector stability, financial stability and support for output. The monetary policy for each fiscal year is announced by the Governor, usually in July.

The main operating instrument is the policy repo rate (the rate at which NRB lends to banks against government securities). The interest rate corridor is bounded above by the standing liquidity facility (SLF) rate and below by the deposit collection rate.

Open market operations use repo, reverse repo, outright purchase/sale of government securities and NRB bonds (Deposit Collection Instruments) to manage liquidity; SLF and deposit collection are the standing facilities.

The cash reserve ratio (CRR) is the share of deposits held as balances with NRB and earns no interest; the statutory liquidity ratio (SLR) is the minimum share of deposits held in specified liquid assets, mainly government securities.

NRB manages the exchange rate against the Indian rupee under a peg (approximately Rs 1.6 = INR 1, with a narrow band); the peg anchors imported inflation and constrains independent interest-rate setting.

Foreign exchange reserves adequacy is judged against import cover (months of goods and services imports) and against short-term external debt; NRB publishes reserves weekly.

The money supply aggregates are M1 (currency plus demand deposits) and M2 (M1 plus time deposits); broad money growth is targeted in the monetary policy programme as an intermediate indicator.

Seigniorage and the inflation tax: government borrowing directly from NRB (ways and means advances) is capped by law; deficit financing through NRB creates reserve money growth and inflationary pressure.

Transmission channels in Nepal are weak because of excess liquidity, administered lending rates and a shallow bond market; NRB therefore uses quantitative measures (CRR, SLR, directed lending) alongside the policy rate.

GDP by expenditure: Y = C + I + G + (X - M). Nominal GDP valued at current prices; real GDP at constant base-year prices. GDP deflator = nominal/real x 100.

Growth rate = (real GDP in t - real GDP in t-1) / real GDP in t-1 x 100. Nepal's economy is service- and remittance-driven; agriculture remains a large employer but a small share of GDP.

Inflation measured by consumer price index: CPI = (cost of basket at current prices / cost at base prices) x 100; inflation rate = (CPI t - CPI t-1)/CPI t-1 x 100. Nepal's CPI is published by the Nepal Rastra Bank and the National Statistics Office.

Fiscal deficit = total expenditure - total revenue (excluding grants); primary deficit = fiscal deficit - interest payments. Deficit financing sources: external loans/grants, domestic borrowing and NRB advances.

Money multiplier = 1/reserve ratio in the simple model; broadly, M2 = money multiplier x reserve money (high-powered money). Credit multiplier effects explain how deposit creation expands broad money.

Phillips curve: short-run inverse relation between inflation and unemployment; long-run curve is vertical at the natural rate. Cost-push versus demand-pull inflation require different policy responses.

Balance of payments: current account (goods, services, income, transfers) + capital/financial account + errors and omissions = change in reserves. A current account deficit must be financed by capital inflows or reserve drawdown.

Purchasing power parity: exchange rate adjusts so identical baskets cost the same; interest rate parity links interest differentials to expected exchange-rate changes. Nepal's peg to the Indian rupee is a real-world application of exchange-rate anchoring.

Basel III capital: Common Equity Tier 1 >= 4.5% of risk-weighted assets, Tier 1 >= 6%, total capital >= 8%, plus a capital conservation buffer of 2.5% and a countercyclical buffer of 0-2.5%.

Risk-weighted assets: credit risk (standardised approach uses external ratings and regulatory risk weights), market risk and operational risk (basic indicator or standardised approach).

NRB's regulatory capital framework sets minimum capital adequacy ratios above Basel minima and prescribes minimum paid-up capital by class of BFIs, revised periodically.

KYC/AML: banks must identify customers, verify identity, monitor transactions, report suspicious transactions to the Financial Information Unit (FIU) and maintain records; Nepal's AML regime is under the Prevention of Money Laundering and Promotion of Fiscal Discipline Act.

Deposit insurance: the Deposit and Credit Guarantee Fund insures deposits up to a prescribed limit per depositor per institution; the fund also provides credit guarantees for priority sectors.

Priority-sector and directed lending: NRB requires BFIs to lend a minimum share of loans to productive sectors (agriculture, energy, tourism, SMEs) and prescribes concessional lending windows.

Non-performing loans: a loan is classified as pass, watchlist, substandard, doubtful or bad in NRB's loan-loss classification; provisioning rates rise with the classification category.

Prompt corrective action and licensing: NRB may restrict business, require recapitalisation, suspend directors or revoke a licence for breaches of the BFIA, NRB Act and prudential regulations.

Supervisory tools: off-site surveillance (periodic returns and ratios), on-site inspections, thematic reviews, stress testing and enforcement actions (warning, fine, business restriction, licence revocation).

CAMELS-style assessment: Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. Composite rating drives supervisory intensity.

Liquidity ratios: liquidity coverage ratio (HQLA / net cash outflows over 30 days >= 100%) and net stable funding ratio (available stable funding / required stable funding >= 100%).

Stress testing scenarios: credit shock (rise in NPLs), interest-rate shock, exchange-rate shock and liquidity shock; results inform capital planning and macroprudential measures.

Systemic risk and macroprudential tools: countercyclical capital buffers, loan-to-value and debt-service-to-income caps, sectoral exposure limits and reserve requirements.

Financial Stability Report: NRB publishes periodic assessments of credit growth, asset quality, liquidity, capital and interconnectedness, with a financial stability map and risk outlook.

Contagion and interconnectedness: interbank exposures, common lenders and concentrated deposit bases transmit shocks; supervisors map large exposures and related-party lending.

Deposit protection and resolution: deposit insurance, early intervention, bridge banks and orderly liquidation protect depositors and limit moral hazard; Nepal's framework is set by the NRB Act and BFIA.

Accounting equation: Assets = Liabilities + Equity. Double entry: every transaction debits one account and credits another for equal amounts.

Trial balance: total debits = total credits. Income statement: profit = revenue - expenses. Balance sheet: assets = liabilities + equity at a point in time.

Accrual versus cash basis: accrual recognises revenue when earned and expenses when incurred; cash basis recognises on receipt or payment.

Depreciation methods: straight line = (cost - residual value)/useful life; reducing balance = carrying amount x rate. Depreciation is a non-cash expense added back in cash-flow statements.

Financial ratios: current ratio = current assets/current liabilities; debt-equity = total debt/equity; ROA = net income/total assets; ROE = net income/equity; NIM = net interest income/earning assets.

Time value of money: future value = PV(1+r)^n; present value = FV/(1+r)^n; NPV = sum of discounted cash flows - initial investment; IRR is the discount rate at which NPV = 0.

Descriptive statistics: mean, median, mode; variance = sum of squared deviations/(n-1) for a sample; standard deviation = square root of variance; coefficient of variation = SD/mean.

Regression and correlation: y = a + bx, where b = covariance(x,y)/variance(x); correlation coefficient r ranges from -1 to +1 and measures linear association, not causation.

नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन वर्ण गरी ४४ वर्ण हुन्छन्; स्वरका भेद: ह्रस्व, दीर्घ, प्लुत।

शब्दभेदका मुख्य प्रकार: नाम, सर्वनाम, विशेषण, क्रियायोगी, क्रियापद, नामयोगी, संयोजक, विस्मयादिबोधक र निपात।

वाक्यमा कर्ता, कर्म र क्रियापदको अन्वय (agreement) मिलाइनुपर्छ; नेपालीमा क्रियापद कर्ताको पुरुष र वचनअनुसार परिवर्तन हुन्छ।

कारकका आठ भेद: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन; विभक्ति चिह्नले कारक पहिचान गराउँछ।

कालका तीन मुख्य भेद: वर्तमान, भूत र भविष्यत्; पक्ष (aspect) का रूप: सामान्य, अपूर्ण र पूर्ण।

पद्यमा लय, छन्द र अलङ्कार; गद्यमा वाक्य संरचना र अनुच्छेदको एकता महत्त्वपूर्ण हुन्छ। शब्दशक्ति: अभिधा, लक्षणा र व्यञ्जना।

लेखनमा हलन्त, शिरोरेखा, स्पर्श र अक्षर जोडाइको शुद्धता; आधिकारिक पत्रमा मिति, सम्बोधन, विषय र हस्ताक्षर अनिवार्य हुन्छन्।

पारिभाषिक शब्दावलीमा अङ्ग्रेजी प्राविधिक शब्दको नेपाली समानान्तर प्रयोग गरिन्छ, जस्तै बैंक, ब्याज, निक्षेप, कर्जा, विनिमय दर।

Nepal's administrative law framework includes the Civil Service Act 2049 (1993), the Civil Service Rules, the Financial Procedures and Fiscal Responsibility Act 2076 (2019) and the Good Governance (Management and Operation) Act 2064 (2007).

The Commission for the Investigation of Abuse of Authority (CIAA) is a constitutional anti-corruption body; the National Vigilance Centre coordinates preventive vigilance across public bodies.

The Right to Information Act 2064 (2007) requires public bodies to proactively disclose information and to respond to requests within 15 days (extendable in specified cases).

Administrative decisions must satisfy legality, rationality and procedural fairness; natural justice requires notice, an opportunity to be heard and an unbiased decision-maker.

Public procurement is governed by the Public Procurement Act 2063 (2007) and its regulations: open competitive bidding is the default method, with thresholds and approval authorities prescribed.

The Financial Procedures and Fiscal Responsibility Act requires the budget to be presented with a medium-term expenditure framework and sets limits on domestic borrowing and guarantees.

English usage for administration: formal register, passive voice for impersonal rules, precise modals (shall = obligation, may = discretion), and parallel structure in lists and headings.

Delegated legislation is valid only within the powers conferred by the parent Act; ultra vires acts are void, and administrative tribunals review decisions for jurisdiction, procedure and error of law.

Nepal Rastra Bank was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955, and began operations as the central bank in 1956, taking over note issuance from the government.

Nepal's currency is the Nepalese rupee (NPR), divided into 100 paisa; the rupee was decimalised in 1956 and the banknote series is issued by NRB in denominations from Rs 5 to Rs 1000.

The Nepal Rastra Bank Act 2058 (2002) is the governing statute of the central bank; it defines NRB's objectives as price stability, external sector stability and financial sector stability, and provides for a Board of Directors.

Nepal is a member of the IMF (joined 1961), the World Bank (1961), the Asian Development Bank (1966) and SAARC; NRB's Governor is Nepal's IMF Governor and the Finance Secretary is the Alternate Governor.

The Nepalese financial sector is bank-dominated: commercial banks (Class A), development banks (Class B), finance companies (Class C) and microfinance institutions (Class D) are licensed and classified by NRB under the Banks and Financial Institutions Act 2073 (2017).

Nepal's fiscal year runs from Shrawan 1 to Asar end (mid-July to mid-July); the annual budget is presented to the Federal Parliament by the Finance Minister, usually in Jestha (May-June).

Nepal is a federal republic under the Constitution of Nepal 2072 (2015), with seven provinces and 753 local units; the constitution lists the central bank's currency and monetary powers as federal competences.

Nepal's main export and remittance corridors are India (open border, pegged exchange rate), the Gulf states and Malaysia; remittances are Nepal's largest single source of foreign exchange, exceeding merchandise exports.

NRB's primary objective is price stability; secondary objectives include external sector stability, financial stability and support for output. The monetary policy for each fiscal year is announced by the Governor, usually in July.

The main operating instrument is the policy repo rate (the rate at which NRB lends to banks against government securities). The interest rate corridor is bounded above by the standing liquidity facility (SLF) rate and below by the deposit collection rate.

Open market operations use repo, reverse repo, outright purchase/sale of government securities and NRB bonds (Deposit Collection Instruments) to manage liquidity; SLF and deposit collection are the standing facilities.

The cash reserve ratio (CRR) is the share of deposits held as balances with NRB and earns no interest; the statutory liquidity ratio (SLR) is the minimum share of deposits held in specified liquid assets, mainly government securities.

NRB manages the exchange rate against the Indian rupee under a peg (approximately Rs 1.6 = INR 1, with a narrow band); the peg anchors imported inflation and constrains independent interest-rate setting.

Foreign exchange reserves adequacy is judged against import cover (months of goods and services imports) and against short-term external debt; NRB publishes reserves weekly.

The money supply aggregates are M1 (currency plus demand deposits) and M2 (M1 plus time deposits); broad money growth is targeted in the monetary policy programme as an intermediate indicator.

Seigniorage and the inflation tax: government borrowing directly from NRB (ways and means advances) is capped by law; deficit financing through NRB creates reserve money growth and inflationary pressure.

Transmission channels in Nepal are weak because of excess liquidity, administered lending rates and a shallow bond market; NRB therefore uses quantitative measures (CRR, SLR, directed lending) alongside the policy rate.

GDP by expenditure: Y = C + I + G + (X - M). Nominal GDP valued at current prices; real GDP at constant base-year prices. GDP deflator = nominal/real x 100.

Growth rate = (real GDP in t - real GDP in t-1) / real GDP in t-1 x 100. Nepal's economy is service- and remittance-driven; agriculture remains a large employer but a small share of GDP.

Inflation measured by consumer price index: CPI = (cost of basket at current prices / cost at base prices) x 100; inflation rate = (CPI t - CPI t-1)/CPI t-1 x 100. Nepal's CPI is published by the Nepal Rastra Bank and the National Statistics Office.

Fiscal deficit = total expenditure - total revenue (excluding grants); primary deficit = fiscal deficit - interest payments. Deficit financing sources: external loans/grants, domestic borrowing and NRB advances.

Money multiplier = 1/reserve ratio in the simple model; broadly, M2 = money multiplier x reserve money (high-powered money). Credit multiplier effects explain how deposit creation expands broad money.

Phillips curve: short-run inverse relation between inflation and unemployment; long-run curve is vertical at the natural rate. Cost-push versus demand-pull inflation require different policy responses.

Balance of payments: current account (goods, services, income, transfers) + capital/financial account + errors and omissions = change in reserves. A current account deficit must be financed by capital inflows or reserve drawdown.

Purchasing power parity: exchange rate adjusts so identical baskets cost the same; interest rate parity links interest differentials to expected exchange-rate changes. Nepal's peg to the Indian rupee is a real-world application of exchange-rate anchoring.

Basel III capital: Common Equity Tier 1 >= 4.5% of risk-weighted assets, Tier 1 >= 6%, total capital >= 8%, plus a capital conservation buffer of 2.5% and a countercyclical buffer of 0-2.5%.

Risk-weighted assets: credit risk (standardised approach uses external ratings and regulatory risk weights), market risk and operational risk (basic indicator or standardised approach).

NRB's regulatory capital framework sets minimum capital adequacy ratios above Basel minima and prescribes minimum paid-up capital by class of BFIs, revised periodically.

KYC/AML: banks must identify customers, verify identity, monitor transactions, report suspicious transactions to the Financial Information Unit (FIU) and maintain records; Nepal's AML regime is under the Prevention of Money Laundering and Promotion of Fiscal Discipline Act.

Deposit insurance: the Deposit and Credit Guarantee Fund insures deposits up to a prescribed limit per depositor per institution; the fund also provides credit guarantees for priority sectors.

Priority-sector and directed lending: NRB requires BFIs to lend a minimum share of loans to productive sectors (agriculture, energy, tourism, SMEs) and prescribes concessional lending windows.

Non-performing loans: a loan is classified as pass, watchlist, substandard, doubtful or bad in NRB's loan-loss classification; provisioning rates rise with the classification category.

Prompt corrective action and licensing: NRB may restrict business, require recapitalisation, suspend directors or revoke a licence for breaches of the BFIA, NRB Act and prudential regulations.

Supervisory tools: off-site surveillance (periodic returns and ratios), on-site inspections, thematic reviews, stress testing and enforcement actions (warning, fine, business restriction, licence revocation).

CAMELS-style assessment: Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. Composite rating drives supervisory intensity.

Liquidity ratios: liquidity coverage ratio (HQLA / net cash outflows over 30 days >= 100%) and net stable funding ratio (available stable funding / required stable funding >= 100%).

Stress testing scenarios: credit shock (rise in NPLs), interest-rate shock, exchange-rate shock and liquidity shock; results inform capital planning and macroprudential measures.

Systemic risk and macroprudential tools: countercyclical capital buffers, loan-to-value and debt-service-to-income caps, sectoral exposure limits and reserve requirements.

Financial Stability Report: NRB publishes periodic assessments of credit growth, asset quality, liquidity, capital and interconnectedness, with a financial stability map and risk outlook.

Contagion and interconnectedness: interbank exposures, common lenders and concentrated deposit bases transmit shocks; supervisors map large exposures and related-party lending.

Deposit protection and resolution: deposit insurance, early intervention, bridge banks and orderly liquidation protect depositors and limit moral hazard; Nepal's framework is set by the NRB Act and BFIA.

Accounting equation: Assets = Liabilities + Equity. Double entry: every transaction debits one account and credits another for equal amounts.

Trial balance: total debits = total credits. Income statement: profit = revenue - expenses. Balance sheet: assets = liabilities + equity at a point in time.

Accrual versus cash basis: accrual recognises revenue when earned and expenses when incurred; cash basis recognises on receipt or payment.

Depreciation methods: straight line = (cost - residual value)/useful life; reducing balance = carrying amount x rate. Depreciation is a non-cash expense added back in cash-flow statements.

Financial ratios: current ratio = current assets/current liabilities; debt-equity = total debt/equity; ROA = net income/total assets; ROE = net income/equity; NIM = net interest income/earning assets.

Time value of money: future value = PV(1+r)^n; present value = FV/(1+r)^n; NPV = sum of discounted cash flows - initial investment; IRR is the discount rate at which NPV = 0.

Descriptive statistics: mean, median, mode; variance = sum of squared deviations/(n-1) for a sample; standard deviation = square root of variance; coefficient of variation = SD/mean.

Regression and correlation: y = a + bx, where b = covariance(x,y)/variance(x); correlation coefficient r ranges from -1 to +1 and measures linear association, not causation.

नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन वर्ण गरी ४४ वर्ण हुन्छन्; स्वरका भेद: ह्रस्व, दीर्घ, प्लुत।

शब्दभेदका मुख्य प्रकार: नाम, सर्वनाम, विशेषण, क्रियायोगी, क्रियापद, नामयोगी, संयोजक, विस्मयादिबोधक र निपात।

वाक्यमा कर्ता, कर्म र क्रियापदको अन्वय (agreement) मिलाइनुपर्छ; नेपालीमा क्रियापद कर्ताको पुरुष र वचनअनुसार परिवर्तन हुन्छ।

कारकका आठ भेद: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन; विभक्ति चिह्नले कारक पहिचान गराउँछ।

कालका तीन मुख्य भेद: वर्तमान, भूत र भविष्यत्; पक्ष (aspect) का रूप: सामान्य, अपूर्ण र पूर्ण।

पद्यमा लय, छन्द र अलङ्कार; गद्यमा वाक्य संरचना र अनुच्छेदको एकता महत्त्वपूर्ण हुन्छ। शब्दशक्ति: अभिधा, लक्षणा र व्यञ्जना।

लेखनमा हलन्त, शिरोरेखा, स्पर्श र अक्षर जोडाइको शुद्धता; आधिकारिक पत्रमा मिति, सम्बोधन, विषय र हस्ताक्षर अनिवार्य हुन्छन्।

पारिभाषिक शब्दावलीमा अङ्ग्रेजी प्राविधिक शब्दको नेपाली समानान्तर प्रयोग गरिन्छ, जस्तै बैंक, ब्याज, निक्षेप, कर्जा, विनिमय दर।

Nepal's administrative law framework includes the Civil Service Act 2049 (1993), the Civil Service Rules, the Financial Procedures and Fiscal Responsibility Act 2076 (2019) and the Good Governance (Management and Operation) Act 2064 (2007).

The Commission for the Investigation of Abuse of Authority (CIAA) is a constitutional anti-corruption body; the National Vigilance Centre coordinates preventive vigilance across public bodies.

The Right to Information Act 2064 (2007) requires public bodies to proactively disclose information and to respond to requests within 15 days (extendable in specified cases).

Administrative decisions must satisfy legality, rationality and procedural fairness; natural justice requires notice, an opportunity to be heard and an unbiased decision-maker.

Public procurement is governed by the Public Procurement Act 2063 (2007) and its regulations: open competitive bidding is the default method, with thresholds and approval authorities prescribed.

The Financial Procedures and Fiscal Responsibility Act requires the budget to be presented with a medium-term expenditure framework and sets limits on domestic borrowing and guarantees.

English usage for administration: formal register, passive voice for impersonal rules, precise modals (shall = obligation, may = discretion), and parallel structure in lists and headings.

Delegated legislation is valid only within the powers conferred by the parent Act; ultra vires acts are void, and administrative tribunals review decisions for jurisdiction, procedure and error of law.

Nepal Rastra Bank was established on 26 April 1956 (Baisakh 14, 2013 BS) under the Nepal Rastra Bank Act 1955, and began operations as the central bank in 1956, taking over note issuance from the government.

Nepal's currency is the Nepalese rupee (NPR), divided into 100 paisa; the rupee was decimalised in 1956 and the banknote series is issued by NRB in denominations from Rs 5 to Rs 1000.

The Nepal Rastra Bank Act 2058 (2002) is the governing statute of the central bank; it defines NRB's objectives as price stability, external sector stability and financial sector stability, and provides for a Board of Directors.

Nepal is a member of the IMF (joined 1961), the World Bank (1961), the Asian Development Bank (1966) and SAARC; NRB's Governor is Nepal's IMF Governor and the Finance Secretary is the Alternate Governor.

The Nepalese financial sector is bank-dominated: commercial banks (Class A), development banks (Class B), finance companies (Class C) and microfinance institutions (Class D) are licensed and classified by NRB under the Banks and Financial Institutions Act 2073 (2017).

Nepal's fiscal year runs from Shrawan 1 to Asar end (mid-July to mid-July); the annual budget is presented to the Federal Parliament by the Finance Minister, usually in Jestha (May-June).

Nepal is a federal republic under the Constitution of Nepal 2072 (2015), with seven provinces and 753 local units; the constitution lists the central bank's currency and monetary powers as federal competences.

Nepal's main export and remittance corridors are India (open border, pegged exchange rate), the Gulf states and Malaysia; remittances are Nepal's largest single source of foreign exchange, exceeding merchandise exports.

NRB's primary objective is price stability; secondary objectives include external sector stability, financial stability and support for output. The monetary policy for each fiscal year is announced by the Governor, usually in July.

The main operating instrument is the policy repo rate (the rate at which NRB lends to banks against government securities). The interest rate corridor is bounded above by the standing liquidity facility (SLF) rate and below by the deposit collection rate.

Open market operations use repo, reverse repo, outright purchase/sale of government securities and NRB bonds (Deposit Collection Instruments) to manage liquidity; SLF and deposit collection are the standing facilities.

The cash reserve ratio (CRR) is the share of deposits held as balances with NRB and earns no interest; the statutory liquidity ratio (SLR) is the minimum share of deposits held in specified liquid assets, mainly government securities.

NRB manages the exchange rate against the Indian rupee under a peg (approximately Rs 1.6 = INR 1, with a narrow band); the peg anchors imported inflation and constrains independent interest-rate setting.

Foreign exchange reserves adequacy is judged against import cover (months of goods and services imports) and against short-term external debt; NRB publishes reserves weekly.

The money supply aggregates are M1 (currency plus demand deposits) and M2 (M1 plus time deposits); broad money growth is targeted in the monetary policy programme as an intermediate indicator.

Seigniorage and the inflation tax: government borrowing directly from NRB (ways and means advances) is capped by law; deficit financing through NRB creates reserve money growth and inflationary pressure.

Transmission channels in Nepal are weak because of excess liquidity, administered lending rates and a shallow bond market; NRB therefore uses quantitative measures (CRR, SLR, directed lending) alongside the policy rate.

GDP by expenditure: Y = C + I + G + (X - M). Nominal GDP valued at current prices; real GDP at constant base-year prices. GDP deflator = nominal/real x 100.

Growth rate = (real GDP in t - real GDP in t-1) / real GDP in t-1 x 100. Nepal's economy is service- and remittance-driven; agriculture remains a large employer but a small share of GDP.

Inflation measured by consumer price index: CPI = (cost of basket at current prices / cost at base prices) x 100; inflation rate = (CPI t - CPI t-1)/CPI t-1 x 100. Nepal's CPI is published by the Nepal Rastra Bank and the National Statistics Office.

Fiscal deficit = total expenditure - total revenue (excluding grants); primary deficit = fiscal deficit - interest payments. Deficit financing sources: external loans/grants, domestic borrowing and NRB advances.

Money multiplier = 1/reserve ratio in the simple model; broadly, M2 = money multiplier x reserve money (high-powered money). Credit multiplier effects explain how deposit creation expands broad money.

Phillips curve: short-run inverse relation between inflation and unemployment; long-run curve is vertical at the natural rate. Cost-push versus demand-pull inflation require different policy responses.

Balance of payments: current account (goods, services, income, transfers) + capital/financial account + errors and omissions = change in reserves. A current account deficit must be financed by capital inflows or reserve drawdown.

Purchasing power parity: exchange rate adjusts so identical baskets cost the same; interest rate parity links interest differentials to expected exchange-rate changes. Nepal's peg to the Indian rupee is a real-world application of exchange-rate anchoring.

Basel III capital: Common Equity Tier 1 >= 4.5% of risk-weighted assets, Tier 1 >= 6%, total capital >= 8%, plus a capital conservation buffer of 2.5% and a countercyclical buffer of 0-2.5%.

Risk-weighted assets: credit risk (standardised approach uses external ratings and regulatory risk weights), market risk and operational risk (basic indicator or standardised approach).

NRB's regulatory capital framework sets minimum capital adequacy ratios above Basel minima and prescribes minimum paid-up capital by class of BFIs, revised periodically.

KYC/AML: banks must identify customers, verify identity, monitor transactions, report suspicious transactions to the Financial Information Unit (FIU) and maintain records; Nepal's AML regime is under the Prevention of Money Laundering and Promotion of Fiscal Discipline Act.

Deposit insurance: the Deposit and Credit Guarantee Fund insures deposits up to a prescribed limit per depositor per institution; the fund also provides credit guarantees for priority sectors.

Priority-sector and directed lending: NRB requires BFIs to lend a minimum share of loans to productive sectors (agriculture, energy, tourism, SMEs) and prescribes concessional lending windows.

Non-performing loans: a loan is classified as pass, watchlist, substandard, doubtful or bad in NRB's loan-loss classification; provisioning rates rise with the classification category.

Prompt corrective action and licensing: NRB may restrict business, require recapitalisation, suspend directors or revoke a licence for breaches of the BFIA, NRB Act and prudential regulations.

Supervisory tools: off-site surveillance (periodic returns and ratios), on-site inspections, thematic reviews, stress testing and enforcement actions (warning, fine, business restriction, licence revocation).

CAMELS-style assessment: Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. Composite rating drives supervisory intensity.

Liquidity ratios: liquidity coverage ratio (HQLA / net cash outflows over 30 days >= 100%) and net stable funding ratio (available stable funding / required stable funding >= 100%).

Stress testing scenarios: credit shock (rise in NPLs), interest-rate shock, exchange-rate shock and liquidity shock; results inform capital planning and macroprudential measures.

Systemic risk and macroprudential tools: countercyclical capital buffers, loan-to-value and debt-service-to-income caps, sectoral exposure limits and reserve requirements.

Financial Stability Report: NRB publishes periodic assessments of credit growth, asset quality, liquidity, capital and interconnectedness, with a financial stability map and risk outlook.

Contagion and interconnectedness: interbank exposures, common lenders and concentrated deposit bases transmit shocks; supervisors map large exposures and related-party lending.

Deposit protection and resolution: deposit insurance, early intervention, bridge banks and orderly liquidation protect depositors and limit moral hazard; Nepal's framework is set by the NRB Act and BFIA.

Accounting equation: Assets = Liabilities + Equity. Double entry: every transaction debits one account and credits another for equal amounts.

Trial balance: total debits = total credits. Income statement: profit = revenue - expenses. Balance sheet: assets = liabilities + equity at a point in time.

Accrual versus cash basis: accrual recognises revenue when earned and expenses when incurred; cash basis recognises on receipt or payment.

Depreciation methods: straight line = (cost - residual value)/useful life; reducing balance = carrying amount x rate. Depreciation is a non-cash expense added back in cash-flow statements.

Financial ratios: current ratio = current assets/current liabilities; debt-equity = total debt/equity; ROA = net income/total assets; ROE = net income/equity; NIM = net interest income/earning assets.

Time value of money: future value = PV(1+r)^n; present value = FV/(1+r)^n; NPV = sum of discounted cash flows - initial investment; IRR is the discount rate at which NPV = 0.

Descriptive statistics: mean, median, mode; variance = sum of squared deviations/(n-1) for a sample; standard deviation = square root of variance; coefficient of variation = SD/mean.

Regression and correlation: y = a + bx, where b = covariance(x,y)/variance(x); correlation coefficient r ranges from -1 to +1 and measures linear association, not causation.

नेपाली वर्णमालामा ११ स्वर र ३३ व्यञ्जन वर्ण गरी ४४ वर्ण हुन्छन्; स्वरका भेद: ह्रस्व, दीर्घ, प्लुत।

शब्दभेदका मुख्य प्रकार: नाम, सर्वनाम, विशेषण, क्रियायोगी, क्रियापद, नामयोगी, संयोजक, विस्मयादिबोधक र निपात।

वाक्यमा कर्ता, कर्म र क्रियापदको अन्वय (agreement) मिलाइनुपर्छ; नेपालीमा क्रियापद कर्ताको पुरुष र वचनअनुसार परिवर्तन हुन्छ।

कारकका आठ भेद: कर्ता, कर्म, करण, सम्प्रदान, अपादान, सम्बन्ध, अधिकरण र सम्बोधन; विभक्ति चिह्नले कारक पहिचान गराउँछ।

कालका तीन मुख्य भेद: वर्तमान, भूत र भविष्यत्; पक्ष (aspect) का रूप: सामान्य, अपूर्ण र पूर्ण।

पद्यमा लय, छन्द र अलङ्कार; गद्यमा वाक्य संरचना र अनुच्छेदको एकता महत्त्वपूर्ण हुन्छ। शब्दशक्ति: अभिधा, लक्षणा र व्यञ्जना।

लेखनमा हलन्त, शिरोरेखा, स्पर्श र अक्षर जोडाइको शुद्धता; आधिकारिक पत्रमा मिति, सम्बोधन, विषय र हस्ताक्षर अनिवार्य हुन्छन्।

पारिभाषिक शब्दावलीमा अङ्ग्रेजी प्राविधिक शब्दको नेपाली समानान्तर प्रयोग गरिन्छ, जस्तै बैंक, ब्याज, निक्षेप, कर्जा, विनिमय दर।

Nepal's administrative law framework includes the Civil Service Act 2049 (1993), the Civil Service Rules, the Financial Procedures and Fiscal Responsibility Act 2076 (2019) and the Good Governance (Management and Operation) Act 2064 (2007).

The Commission for the Investigation of Abuse of Authority (CIAA) is a constitutional anti-corruption body; the National Vigilance Centre coordinates preventive vigilance across public bodies.

The Right to Information Act 2064 (2007) requires public bodies to proactively disclose information and to respond to requests within 15 days (extendable in specified cases).

Administrative decisions must satisfy legality, rationality and procedural fairness; natural justice requires notice, an opportunity to be heard and an unbiased decision-maker.

Public procurement is governed by the Public Procurement Act 2063 (2007) and its regulations: open competitive bidding is the default method, with thresholds and approval authorities prescribed.

The Financial Procedures and Fiscal Responsibility Act requires the budget to be presented with a medium-term expenditure framework and sets limits on domestic borrowing and guarantees.

English usage for administration: formal register, passive voice for impersonal rules, precise modals (shall = obligation, may = discretion), and parallel structure in lists and headings.

Delegated legislation is valid only within the powers conferred by the parent Act; ultra vires acts are void, and administrative tribunals review decisions for jurisdiction, procedure and error of law.