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The Nepal Rastra Bank (NRB) has been regularly collecting reserves from commercial banks in an effort to reduce excess cash flow in the market. However, commercial banks are now facing an oversupply of funds due to declining demand for loans. Despite the government’s repeated claims of improving economic indicators and supporting start-ups and entrepreneurship, the market remains in a slump, and investors continue to face serious challenges on multiple fronts.

Widespread issues such as political extortion, labor disputes backed by political protection, and bribery by government officials have become open secrets in the business community. Market intermediaries and brokers have grown so influential that they can even sway government policy in their favor. Meanwhile, political leaders in power seem more focused on amassing wealth by any means rather than creating a conducive environment for economic growth.

Corruption is rampant and uncontrolled, deeply embedded in the system. If the Commission for the Investigation of Abuse of Authority (CIAA) would open all the pending corruption files, many past and present leaders who held public office would face serious charges. Such a climate has deeply discouraged investors, who seek a stable and secure environment to do business but instead encounter layers of exploitation and uncertainty.

As a result, many investors prefer to secure a minimum 10 percent profit by importing goods rather than taking the risk of manufacturing domestically. This not only stifles local production but also undermines national self-sufficiency.

Another troubling issue lies in access to finance. Ordinary citizens often struggle to meet the stringent requirements imposed by banks to obtain loans. In contrast, wealthy businessmen are able to manipulate bank officials and access large-scale loans with ease. If the loan application process were simplified—particularly by allowing collateral-based lending—it would significantly expand financial inclusion and allow common people to access much-needed credit.

Currently, banks require applicants to submit salary statements to ensure repayment capability, along with tax clearance certificates. While accountability is important, the role of tax compliance should be clearly defined and regulated by appropriate authorities, not commercial banks. Banks should not overstep their role by demanding documents that fall outside their mandate.

Removing such bureaucratic hurdles would empower everyday citizens to access financial services, instead of allowing only a small elite to benefit from depositors’ funds. If the government is truly committed to promoting inclusive growth and empowering small-scale entrepreneurs, it must eliminate unnecessary restrictions and ensure that the financial system serves the broader public—not just the powerful few.