AmCham Nepal, Cross River Bank bring financial leaders together to strengthen Nepal’s global capital market connectivity

KATHMANDU: The American Chamber of Commerce in Nepal (AmCham Nepal), in partnership with U.S.-based Cross River Bank, convened a high-level roundtable in Kathmandu, bringing together Nepal’s leading banking executives, investors, hydropower developers, fintech entrepreneurs, non-resident Nepali (NRN) investors, and former ambassadors to discuss strategies for strengthening Nepal’s financial infrastructure and improving access to global capital markets.

Held under the Chatham House Rule to encourage open discussion, the invitation-only event focused on identifying practical measures to enhance Nepal’s investment ecosystem, deepen capital markets, and position the country as a more attractive destination for long-term international investment.

The roundtable marked the first time AmCham Nepal has assembled senior leaders from the country’s banking, investment, and private sectors for a dedicated dialogue on integrating Nepal more closely with global financial markets.

The discussion was led by Pravesh Rijal, Executive Vice President of Cross River Bank, and Henry Pinnell, Head of Investment Banking at Cross River Bank, who travelled from New York to participate in the event.

Strengthening Nepal’s financial ecosystem

Participants centred their discussions on how Nepal can build a stronger financial system capable of attracting greater institutional investment from international markets.

The dialogue highlighted that Nepal already possesses significant domestic financial resources, including approximately USD 23 billion in foreign exchange reserves, trillions of rupees deposited within the banking system, and more than USD 13 billion managed by provident funds, pension funds, and insurance institutions.

Despite these financial resources, participants noted that Nepal continues to underperform in attracting foreign direct investment (FDI). According to data presented during the discussion, only around 39 percent of committed foreign investment has been implemented, indicating persistent challenges in investment execution and financial market development.

Rather than focusing solely on capital availability, participants emphasized the importance of modern financial infrastructure that enables efficient capital allocation, transparent risk pricing, and greater participation by institutional investors.

Capital market reforms identified as priority

The roundtable identified several strategic reforms that could significantly strengthen Nepal’s financial sector and improve investor confidence.

Among the priorities discussed were the expansion of Nepal’s bond and fixed-income markets, development of investment instruments aligned with international standards, stronger risk-based pricing mechanisms, deeper and more liquid capital markets, and improvements in financial infrastructure supporting long-term institutional investment.

Participants agreed that these reforms could increase both domestic capital mobilisation and international investor participation while helping Nepal integrate more effectively into regional and global financial markets.

Hydropower seen as strategic investment opportunity

Nepal’s hydropower sector emerged as one of the central themes of the discussion.

Participants observed that rapid growth in artificial intelligence, digital infrastructure, advanced manufacturing, and global electrification is driving unprecedented demand for reliable electricity worldwide.

While many developed economies are facing lengthy waiting periods for new electricity connections, Nepal is gradually moving toward surplus power generation, creating new opportunities to attract industrial investment and expand electricity exports.

The discussion also examined structural issues affecting hydropower investment, including project return frameworks, foreign exchange risks, financing structures, and measures to improve risk-adjusted returns for international institutional investors.

Participants further explored opportunities to maximise Nepal’s renewable energy potential by linking hydropower development with emerging industries such as hyperscale data centres, artificial intelligence infrastructure, green hydrogen, green ammonia production, and cross-border electricity trade.

Artificial intelligence and digital economy discussed

Artificial intelligence (AI) was identified as another major driver of Nepal’s future economic growth.

Participants noted that AI technologies are lowering barriers to entrepreneurship, accelerating innovation, and enabling companies to compete internationally with lower capital requirements than in previous decades.

Nepal’s growing information technology industry, expanding digital service exports, and young technology workforce were recognised as strong foundations for developing a competitive digital economy.

The discussion emphasised continued investment in digital infrastructure, innovation, and advanced technical skills to strengthen Nepal’s long-term competitiveness in global technology markets.

Mobilising diaspora investment

The role of the global Nepali diaspora also featured prominently during the roundtable.

While remittances remain one of Nepal’s largest sources of foreign exchange, participants discussed the need to create structured investment vehicles capable of channeling diaspora capital into productive sectors such as infrastructure, entrepreneurship, renewable energy, and innovation.

Participants stressed that internationally recognised governance standards, transparency, and robust risk management frameworks would be essential to building investor confidence among both the Nepali diaspora and global institutional investors.

Commitment to continued collaboration

Drawing on its experience in technology-enabled banking and financial infrastructure, Cross River Bank shared insights into the financial systems that support efficient payments, lending, capital formation, and investment access in modern financial markets.

The roundtable concluded with a shared commitment among financial institutions, investors, policymakers, development partners, and international financial organisations to continue working together on practical initiatives that strengthen Nepal’s financial ecosystem.

Participants agreed that sustained collaboration and continued dialogue will be important for developing modern financial infrastructure, expanding access to international capital, and positioning Nepal as a more competitive destination for long-term investment.

AmCham Nepal said the event represents the beginning of an ongoing engagement aimed at supporting Nepal’s next phase of financial market development through stronger public-private cooperation, international partnerships, and globally competitive financial systems.

The American Chamber of Commerce in Nepal is an independent, non-profit business organisation that works to strengthen trade, investment, and commercial relations between Nepal and the United States through policy dialogue, advocacy, and private-sector collaboration.

Cross River Bank is a U.S.-based technology infrastructure bank that combines banking services with financial technology to support payments, lending, and capital movement for fintech companies, financial institutions, and businesses across global markets.