CHAPTER-1
Introduction
Background of the study
Concept of bank; Bank, a financial institution, is playing a vital role in the economic development of the country. The function of banks are not only accepting deposits and granting loans but also, including wide range of services to the different strata of society, to facilitate the growth of trade, commerce industry and agriculture of the national economy. In the absence and insufficiency of banking and financial facilities, the growth of the economy development becomes slow. However, bank is the resource for economic development which maintains the self-confidence of various segments of society and advances credit to the people.
It may be said that banking in its must simple form, is an old as authentic history. Banking has come to the present advance form through various stages. In the history of banking development, we can’t forget the bank of case De San Giorgio in Genoa, established in 1148 and Bank of Venice established in 1157.In 1401, the bank of Barcelona established in Barcelona. In fact, Modern bank started to take rapid speed in forming and functioning form 17th century. During this period, bank of Milan, bank of Florence and bank of ST. George was established in Genoa. In 1609, the bank of Amsterdam was established in Germany and the bank of England was established in England.
In Nepal, the history of bank is not so long, in 1933(1876AD), the transaction. However, Nepal bank limited is the first commercial bank in Nepal. Nepal Rastra bank was established on 2012BS as a Central bank of Nepal. On 2016BS, Nepal industrial Development Bank, the second commercial bank of Nepal was established Nepal bank limited and Agriculture Development Bank were established on 2022 and 2024BS respectively. After the government adaption the policy of liberalization the economy, speedy growth of began. Now, in