Behind Nepal's 17 licensed development banks sits a lesser-known but influential body: the Development Bankers Association Nepal (DBAN). If you follow banking-sector news, policy debates, or NRB's regulatory changes affecting Class "B" institutions, you have likely encountered DBAN's positions even without realizing it. Here is what DBAN actually does, who leads it, and why its advocacy matters to anyone with money in a development bank.
What Is DBAN and When Was It Established?
The Development Bankers Association Nepal is a not-for-profit institution established in 2062 BS (around 2005 AD) under Nepal's Institutions Registration Act, created specifically to represent the collective interests of Class "B" development banks licensed under the Bank and Financial Institutions Act. It functions similarly to how the Nepal Bankers' Association represents commercial banks, giving development banks a unified voice in policy discussions with Nepal Rastra Bank and the broader financial sector.
DBAN's Role as an Umbrella Body
DBAN's core functions include coordinating among member banks on shared industry concerns, publishing reference information like forex rates for members, organizing training programs on financial literacy and risk management, and serving as a collective negotiating and advocacy voice when NRB proposes new directives affecting Class B institutions. The association is led by an Executive Committee and holds an Annual General Meeting (AGM) that brings together CEOs of member development banks to review the sector's performance and set priorities for the coming year — the 20th AGM was held in March 2026, chaired by Suyog Shrestha, who serves as DBAN's President and is also CEO of Shangri-la (Sangrila) Development Bank.
Current Advocacy: The Debate Over Bank Classification
One of DBAN's most prominent recent public positions concerns what its leadership has described as flaws in Nepal's A/B/C/D bank classification system. The core argument industry voices have raised is that treating all development banks under a single, increasingly commercial-bank-like capital and regulatory framework risks eroding the very regional development mandate the Class B category was originally created for — potentially reducing access to finance in underserved districts even as balance sheets get stronger through consolidation. This remains an active, unsettled policy debate between DBAN's advocacy and NRB's financial-stability-focused approach, and it is worth following both sides rather than assuming either position as settled fact.
Key Resources DBAN Provides
- Forex reference rates: published for use by member institutions.
- Annual General Meeting reports: covering sector performance, financial statements, and policy priorities for the year — a useful public record for tracking how the sector is evolving.
- Notices and circulars: updates relevant to member institutions on regulatory changes and industry coordination.
Recent Notices and Policy Engagement with NRB
DBAN regularly engages with Nepal Rastra Bank on behalf of its members whenever new directives are proposed that affect capital requirements, lending norms, or operational rules for Class B institutions — a role that became especially visible during the capital-driven merger wave of the past decade. This engagement typically happens through formal consultation processes, position papers, and direct dialogue between DBAN's leadership and NRB's regulatory departments, rather than through public campaigns, which is why much of this advocacy work is less visible to ordinary depositors than to industry insiders and financial journalists.
Why DBAN's Positions Matter for the Industry's Future Structure
The outcome of debates DBAN is currently engaged in — particularly around bank classification and capital requirements — will directly shape how many development banks exist in Nepal five years from now, how they are regulated, and whether Nepal's regional development financing mandate survives in a recognizable form or gets absorbed entirely into commercial-bank-style regulation. For depositors and borrowers, this matters because it affects the long-term availability of regionally-focused banking services, particularly in districts where a development bank may be the most locally engaged financial institution available.
How Readers Can Track DBAN Updates
DBAN publishes news, notices, and AGM reports directly on its official website, which is the most reliable source for tracking the association's current advocacy positions and any policy engagement with NRB. Financial news outlets covering Nepal's banking sector also regularly report on DBAN's statements and AGM proceedings, making local business news coverage a useful secondary source for staying current on the association's activities.
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