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At the conclusion of each Microfinance Summit, a declaration is presented by all participants to outline the future actions to be taken by the sector. The 2013 Microfinance Summit Nepal Declaration is displayed below, and will be followed by the 2017 Declaration at the conclusion of the upcoming Summit.


Microfinance Summit Nepal 2013

Kathmandu Declaration: February 16, 2013

Center for Microfinance (CMF), Nepal

Organizer and the Secretariat of the Summit



·       Noting that the First Microfinance Summit Nepal of 2008 had set the goal to ensure access to financial services to  3 million poor families, especially women, by 2015, and the subsequent Summit held on 2010 also stressed on the need to attain that goal that  sustained and concerted effort is called for in this regard;

·       Recognizing that widespread and acute poverty continues to pervade Nepal and much needs to be done to meet the poverty reduction target of the country including the Millennium Development Goals in this respect;

·       Being aware that microfinance is widely promoted by government, non-government, Co-operatives  and private sector and by people themselves spontaneously all across the country;

·       Being conscious, however, that even microfinance initiatives are often unable to reach the poorest section of the communities;

·       Mindful that there is a priority need for enabling the poor to make increasing investment in enterprises on a sustained basis for inclusive economic growth;

·       Convinced that in a predominantly agrarian country like Nepal, banking sector resources must be accessible to rural people on  priority basis;

·       Realizing that microfinance, while being increasingly popular  among the development agencies and people in the country, remains characterized by a wide diversity of approaches with  strong implications regarding effectiveness, sustainability and  replicability;

·       Considering that there is a need for  coordination, monitoring  and dissemination of achievements and constraints in the sector;

·       Having noted that membership of the poor people in MFI’s brings about the improvements in other areas such as adult literacy, Children’s education, health, sanitation, empowerment, family planning etc.,

·       Considering that the socially responsible microfinance is yet to be promoted and strengthened.


Therefore, the Third Microfinance Summit Nepal 2013 hereby:

1.     Appeals Constituent Assembly and its members to:

Include “Access to financial services for the poor is the primary responsibility and guiding principles of the state for inclusive economic growth” in the new constitution to be promulgated by the Constituent Assembly of Nepal,

2.     Appeals Government of Nepal (Cabinet Secretariat) to:

Allocate resources in the coming budget to implement micro- insurance schemes including crop, health insurance etc throughout the nation through MFIs as a integral part of the microfinance.

3.     Requests the National Planning Commission to:

   3.1. Include microfinance as a priority sector of national development and to that end, ensure that the MFIs are used as the conduit for the planning and implementation of various social and economic          development activities,

   3.2. Create a national database for the microfinance sector in coordination with Nepal Rastra Bank and Department of Cooperatives,

4.     Requests Ministry of Finance to:

   4.1. Use the tax received through microfinance institutions for developing microfinance sector and develop mechanism to use the fund in consultation with the microfinance industry.

   4.2. Ensure inclusion of microfinance sector as a pillar of macroeconomic framework for inclusive economic growth,

   4.3. Allocate fund and conducting impact assessments and other relevant studies in the microfinance sector,

   4.4 Allocate resources for merger of MFIs including five Gramen Bikash Banks.    

5.     Urges the Department of Cooperatives to:

   5.1 Redefine criteria for membership to ensure scale of operation and develop separate act for financial cooperatives also considering geographical conditions, and

   5.2 Help facilitate merger of cooperatives by developing proper mechanism.

6.     Requests Nepal Rastra Bank to:

   6.1. Ensure laws and regulations to suit the needs of the microfinance sector is enacted.

   6.2. Create conditions to avail sufficient wholesale resources for the MFIs from financial systems to accelerate outreach for meeting the summit goal,

   6.3. Simplify reporting requirement for branches operating in remote areas such as weekly reporting in place of daily cash reporting to allow capable microfinance institutions to accept public deposit to make    them self-reliant following prudent regulations.

   6.4 Redefine the loan ceiling of microfinance based on the current economic opportunities to enhance enterprises.                                    

   6.5. Ensure participation of MFIs in microfinance credit information bureau and microfinance credit rating,

   6.6. Expedite FINGO’s transformation into Microfinance Banks allowing up to 70 % of the shareholding to the related consortium of FINGOs in the transformation process,

   6.7 Allow MFIs to go to IPO within a period that is practical and feasible.

7.     Requests Centre for Microfinance to:

   7.1 Continue Undertaking a comparative studies of the wide diversity of methodologies and organizational structures employed by various microfinance initiatives in the country and make a comparative  assessment of their social and financial performances in terms of their coverage of the poor, effectiveness and sustainability,

   7.2 Undertake studies on best practices on:

·       Reaching to hills

·       Proper Targeting

·       Offering innovative products and methodologies

·       Linking microfinance clients with credit pus activities

   7.3. Continue developing and implement advocacy agenda for reform in the government and donor policies in microfinance, and

   7.4 Review the status of implementation of Declarations periodically and monitor through a deployed staff.

   7.5 Draft code of ethics for microfinance operations to promote prudent microfinance service mechanism in consultation with the larger stakeholders. 

8. Requests Microfinance Institutions to:

   8.1. Ensure client protection principles and social performance standards are applied and follow microfinance industry code of conduct.

   8.2 Contribute for studies and operational researches.

   8.3. Expand microfinance operations in all parts of the 75 districts to provide sustainable access to financial services for the poor, disadvantaged groups, and socially excluded groups by 2016,

   8.4. Review diversified products and services periodically to ensure emerging needs of the clients are met.

   8.5. Maintain and collect on a regular basis disaggregated data of clients to ensure social and economic inclusion,

9. Announces:

   9.1  The 4th Microfinance Summit Nepal to be held in February 2016, and

   9.2 Center for Microfinance (CMF), Nepal monitors the progress on the implementation of the 3rd Microfinance Summit Nepal declaration 2013 and continues its efforts to make a success of the 4th Summit.

   9.3 Link relevant summits such as SACCO's summit, SFCL summit, Vision 2015, with this declaration.

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