According to Nepal’s central bank, lending by banks and financial institutions to the private sector grew by only 3.8% in FY22, a sharp drop from the 13.1% growth rate in the previous year. Private sector credit growth varied across commercial banks (3.5%), development banks (7.6%), and finance companies (0.6%), with the majority secured against land and building collaterals, making up 68% of all outstanding credit. Loans against current assets accounted for only 11.6%.