Kathmandu : Laxmi Sunrise Bank has entered into a partnership with the International Finance Corporation (IFC) to combat financial abuse under the Empower Finance Alliance, an innovative initiative focused on addressing financial abuse in Nepal. This collaboration, supported by the Australian Government’s Department of Foreign Affairs and Trade, represents a critical step in strengthening financial security and promoting inclusive economic growth.
Financial abuse is a form of domestic violence that involves the misuse of financial resources to exert control over individuals within personal relationships. This includes manipulation of financial products such as bank accounts, loans, and credit to harm victims. The economic consequences of financial abuse are significant, leading to financial losses, damaged credit, reputational damage, and a loss of trust in financial institutions, all of which undermine financial inclusion efforts.
Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan, and Nepal, commented, “Through this partnership, we aim to drive systemic change by embedding standards within financial institutions to recognize and prevent abuse, ensuring a safer environment for financial activities.”
Through the Empower Finance Alliance, IFC will provide Laxmi Sunrise Bank with universal principles that will guide the development of safe and secure banking products and services. The partnership will also help the bank define its role in preventing and responding to financial abuse while conducting internal diagnostics to inform implementation.
Ajaya Bikram Shah, CEO of Laxmi Sunrise Bank, expressed, “This partnership is a pivotal move in addressing financial abuse, a critical but often neglected issue in the banking sector. Together with IFC, we aim to redefine safety and inclusivity in financial services, setting new industry benchmarks and ensuring a secure environment for vulnerable populations.”
Launched in August 2024, with backing from the Government of Australia, the Empower Finance Alliance includes nine financial institutions from Nepal, Papua New Guinea, Sri Lanka, Vanuatu, and Vietnam, collectively serving over 30 million customers. The Alliance promotes principles that guide the assessment, design, and development of safe banking products to minimize risks associated with financial abuse.
This collaboration reinforces the shared vision of Laxmi Sunrise and IFC to create a safer, more equitable financial ecosystem. By prioritizing safety and inclusivity, the Empower Finance Alliance sets a new standard for the banking sector in addressing financial abuse and supporting underserved communities.
Formed on July 14, 2023, through the merger of Laxmi Bank (established in 2002) and Sunrise Bank (established in 2007), Laxmi Sunrise is a class ‘A’ commercial bank committed to delivering exceptional financial services, blending a future-focused approach with a rich legacy of trust and reliability.
The International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets. IFC works in over 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing economies. In the 2024 fiscal year, IFC committed a record $56 billion to private companies and financial institutions in developing countries, mobilizing private sector solutions and capital to help eliminate poverty and ensure a livable planet. For more information, visit www.ifc.org.
The Women’s Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP), supported by the Government of Australia, aims to address gender and inclusion gaps in the private sector and build the evidence base for broader action by companies, financial institutions, and key government stakeholders in the Asia-Pacific region. WEE-FIP seeks to create new gender-financing opportunities for private sector investors and development finance institutions, driving measurable economic empowerment for women, inclusive growth, and enhanced gender equality and inclusion.
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