This article examines the causal relationship between capital market development and economic growth in Nepal using annual time series data from 1994-2019. Total market capitalization is used as a proxy of secondary market development and the total public issue of securities in a particular year is taken as an indicator of primary market development. Using the Johansen cointegration test and vector error correction method (VECM) in regression analysis, the study reveals that capital markets in Nepal are supporting economic growth through efficient fundraising, efficient allocation of resources, fair price determination and liquidity. The findings from this study conclude that there is a unidirectional causality running from capital market development to economic growth in both the long-run and short-run. However, this study found no support for causality running from economic growth to the capital market. Therefore, the findings from this study recommend policies that increase the reach of the capital market to small and medium enterprises (SMEs) and individual investors. Keywords: capital market, market capitalization, primary market, economic growth, Nepal

Human resource is the fundamental resources of the organization, which determine the performance of the organization as well as gives the life to the other resources and the organization. This study focuses on assessing the role of employee performance-driven practices on employees’ performance in Nepalese commercial banks. This study utilizes the quantitative research approach with a causal-comparative and analytical research design. The sample of the study is 385 respondents from Kathmandu valley. Reliability analysis, descriptive statistics, correlation, and regression analysis are utilized to draw the conclusion. Evidence indicates that leadership, working environment, motivation, and job satisfaction positively and significantly affect employee performance in the Nepalese banking sectors. Finally, this study suggests banks provide excellent leadership opportunities, a good working environment to the employees, rich motivation, and focus on job satisfaction through intrinsic and extrinsic reward systems that positively contribute to the bank employees’ performance and might lead to downsizing employee turnover also.

This paper examined the causal relationship between banking sector development and economic growth in Nepal using annual time series data from 1975 to 2019. The per capita real GDP growth rate is taken as the proxy of economic growth. Private sector credit is used as the indicator of banking sector development and inflation, trade openness, and government spending as control variables. Using the Johansen cointegration test and vector error correction method (VECM) in regression analysis, the study reveals that the development of the banking sector in Nepal is positively contributing to economic growth through efficient allocation of financial resources. The findings from this study conclude that there is a unidirectional causality running from banking sector development to economic growth in the long run, which supports the supply-leading hypothesis. However, this study found no support for causality running from economic growth to banking sector development neither in the long run nor in the short run. Therefore, the findings from this study recommend policies that increase the reach of the banking services to small and medium enterprises (SMEs) and individual investors, even in the rural areas of the country.

This paper analyzed the effect of loan growth in three performance aspects, profitability, stock return and credit risk of Nepalese commercial banks applying the panel autoregressive distributed lag (ARDL) approach. To avoid the effect of the merger on loan growth 8 banks which have not merged with or acquired other institutions are taken as sample and 8-year data from each sample bank from 2012- 2019 has been sued in the study. The result showed that none of the three performance indicators is affected by the loan growth in the long-run. It is also found that the credit risk of banks does not change with the change in loan growth in the short-run as well. This indicates that banks are not aggressive in their lending. However, profitability and stock return are affected positively by the loan growth in the short-run. The findings from this study suggest to the investors in the stock market to choose the stock of bank with higher loan growth.