1. Financial Institutions and it’s Responsibilities
Presented By: Sabita Karki

2. Financial Institutions
Financial institutions, also known as financial intermediaries, are the financial organizations that channel the savings of government, businesses, and individuals into loans or investments.
It includes those companies, firms, trusts who provide money related services, schemes, wealth growth and management services, debt and equity facilitation and so on to general public or other institutions.

3. Types of Financial Institutions (in Nepalese context)
Depository Institutions
Commercial Banks
Development Banks
Finance companies and co-operatives
Credit Unions
Non Depository Institutions
Mutual Funds
Securities Firms
Insurance Companies
Pension Funds

4. Financial Institutions
Major Role:
The major role of the financial institutions is to accumulate funds from various savers and lend those funds to borrowers.
Financial Institutions
Surplus Budget
Deficit Budget

5. Responsibilities towards Nation
Financial Institutions have to follow the rules and regulations that has been set by the nation’s law such as:
Tax Payments(Income Tax, Value Added Tax, Corporation Tax……)
Protection of labor rights and establishing fairness to the labor force
Reporting/Information Responsibilities
Protection of Nation’s goodwill
Anti-Discriminatory duties
Development of small firms

6. Responsibilities towards Society or Environment
Financial institution must make a contribution towards the prosperity and stability of the society in which it operates.
Corporate Social Responsibility has become the major concern in this era.
Environmental protection through Go-Green-Movements, eco-friendly activities, contribution to pollution and wastage control, carbon footprint reduction and so on….

7. Some of the CSRs performed by banks of Nepal:
Blood donations campaigns
Games and sports activities
Child and women developments
Health care
Education, training and assistance to underprivileged
Contributions to clubs and associations

8. Cultural Responsibilities Of FIs
Financial institution cannot ignore the culture of the place and population where it exists and operates.
Arts, heritage, religious activities and cultural protection comes under it.
For instance: In Islamic nations, Islamic banks should not promote the credit policies as lending activities are considered as taboo.

9. Responsibilities towards shareholders and stakeholders
Financial Institution should be very true to its shareholders and stakeholders showing them the true financial position and performance.
Shareholders should get the appropriate return from their investment.
Customers should get all the information very correct and fair and the services in time.
Organizing and facilitating volunteering activities among its staff members and contribution to employees welfare
Similarly, they have to maintain accounting standards for financial reporting that has been set by International Accounting Standard(IAS).

10. Conclusion
The goal of contemporary organization should be to maximize it’s shareholders value, at the same time, expectations of other stakeholders by integrating economic, social and environmental operations. Therefore, for real change and sustainable moral clean up not only the government but the financial institutions themselves should involve in ethical practices by publishing their code of conducts.

11. ThANKYOU!!!!!!