Kathmandu, Nepal, December 22, 2024—Laxmi Sunrise Bank today signed an agreement with the International Finance Corporation (IFC) to tackle financial abuse under the ‘Empower Finance Alliance’—a first-of-its-kind initiative to address financial abuse in Nepal. This partnership, supported by the Australian Government’s Department of Foreign Affairs and Trade, represents a significant step in enhancing financial security and fostering inclusive economic growth.

 

Financial abuse, a form of domestic violence, involves the misuse of financial resources to exert control over individuals in personal relationships, such as partners, caregivers, or elderly relatives. This can include the manipulation of financial products like bank accounts, loans, and credit to cause harm. Its economic implications are profound, undermining financial inclusion efforts, resulting in financial losses, damaged credit ratings, reputational harm, and a loss of trust in financial institutions.

 

“Through this partnership, we aim to drive systemic change by embedding standards in financial institutions to recognize and prevent abuse, and create a safe environment for financial activities,” said Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan, and Nepal.

 

Through the Empower Finance Alliance, IFC will equip Laxmi Sunrise Bank with universal principles to guide the development of safe banking products and services, supporting the bank to define its role in preventing and responding to financial abuse and conduct internal diagnostics to inform implementation.

 

“This partnership marks a significant step forward in addressing financial abuse, a critical but often overlooked issue in the banking sector,” said Ajaya Bikram Shah, Chief Executive Officer of Laxmi Sunrise Bank. “Together with IFC, we aim to redefine safety and inclusivity in financial services, setting new industry benchmarks while creating a secure environment for vulnerable groups.”

 

Launched by IFC this August, with support from the Government of Australia, the Empower Finance Alliance includes nine financial institutions from Nepal, Papua New Guinea, Sri Lanka, Vanuatu, and Viet Nam, collectively serving more than 30 million customers. Working with each bank, the Alliance promotes principles to guide the assessment, design and development of safe banking products and services to minimize risks from financial abuse.

 

This collaboration reaffirms the shared vision of Laxmi Sunrise and IFC to create a safer and more equitable financial ecosystem. By prioritizing safety and inclusivity, the Empower Finance Alliance sets a new standard for the banking sector to address financial abuse and support the underserved.