Cover -- Contents -- I. Nepal-Considerations in the Choice of the Fiscal Stance -- A. Introduction -- B. Debt -- C. Deficits -- D. The Level and Composition of the Budget -- E. Conclusion -- References -- II. An Analysis of Systemic Risks in Nepal's Banking Sector in the Wake of the Global Crisis -- A. Introduction -- B. Macro-Financial Linkages -- C. Analysis of Systemic Stability of Banks -- D. Conclusion -- References -- Appendix -- 1. Nepal's State Banks -- Figure -- Figure 1. External Debt, 2000-08 -- Figure 2. Public Debt, 2000-08 -- Figure 3. Debt Indicators, 2008 -- Figure 4. Nepal: Debt and IIR -- Figure 5. Fiscal Indicators -- Figure 6. Expenditure -- Figure 7. Revenue and External Aid -- Figure 8. GDP Growth, 2000-08 -- Table -- Table 1: Country Ratings, Public Debt Ratios, and Clubs 1/ -- Table 2: Debt Thresholds for Nepal -- Table 3. Simulation: Credit and Deposit Growth -- Table 4. Selected Banking Crises in Asia.