Likewise, financial institutions and firms may not pay much attention in normal times to funding liquidity and market liquidity that enhances the funding liquidity. They gain a painful appreciation of the vital importance of market liquidity, however, if – like the circulatory system – it stops functioning.
Similarly, there were 36 finance companies and 48 microfinance institutions. Moreover, there were 15 cooperatives permitted by NRB to conduct limited banking activities as well as 25 financial NGOs also licensed by NRB to undertake micro finance activities in Nepal.