4 B. Commercial banks — functions in Nepal

1. Accepting deposits — demand (current), savings, fixed/time (the liability menu);2. Advancing loans — overdrafts, cash credit, term loans, trade finance (the asset menu — the spread between deposit and lending rates as the bank's core income);3. Credit creation — the signature macro function: each bank lends its excess reserves; the borrower's deposit becomes another bank's reserve; the system multiplies the original deposit (the money multiplier: 1/reserve ratio's logic) — how banks create money (the point every law student should be able to explain once);4. Agency functions — collections, payments, standing instructions, agency of the government's schemes;5. General/utility services — lockers, remittances (the remittance pipeline — Nepal's macro lifeline runs through the banking system: the licensed remitters, the IME-type networks), letters of credit (trade finance's legal instruments), guarantees, e-banking's full suite. Nepal's sector(facts with hedges): from the single-state-bank era to the 1984 first joint-venture bank; now dozens of commercial banks (the merger-era consolidation), thousands of branches reaching the municipalities, the mobile-banking leapfrog (digital payments' surge since the mid-2010s — the QR-code pasal's economics), and the standing file of problem-loan cycles (construction and real-estate booms' aftermaths).