IDEAS home Printed from https://ideas.repec.org/p/nrb/wpaper/nrbwp202051.html
   My bibliography  Save this paper

Impact of Covid-19 on Microfinance Institutions of Nepal

Author

Listed:
  • Prakash Shrestha Ph.D.

    (Nepal Rastra Bank)

Abstract

Nepal has also been impacted by the spread of Covid-19 which was originated in China in late December 2019. The spread of pandemic has both health and economic effect in any country. This paper aims to assess the impact of Covid-19 pandemic on microfinance institutions in Nepal based on the data reported by them as per the regulatory requirement. Assessment is done by evaluating the changes in some major financial indicator such as saving, loans, non-performing loans, profitability, change in the number of employees and borrowers among others after the imposition of lockdown measures by the Government to contain the spread of coronavirus. Review of data for the period of mid-March 2020 to mid-July 2020 shows that microfinance institutions have severely been hit by the lockdown measures. However, with the help of NRB policy provisions and some degree of resiliency, they managed to survive during the review period. Since the spread of Covid-19 is yet to over, downside risks still exist as shown by the growing number of overdue borrowers. Concrete, collaborative and innovative approaches are needed to navigate through this troubled times.

Suggested Citation

  • Prakash Shrestha Ph.D., 2020. "Impact of Covid-19 on Microfinance Institutions of Nepal," NRB Working Papers 51/2020, Nepal Rastra Bank, Economic Research Department.
    • Handle: RePEc:nrb:wpaper:nrbwp202051
    as

    Download full text from publisher

    File URL: https://www.nrb.org.np/contents/uploads/2020/10/NRB_Working_Paper-NRB-WP-51-Impact_of_Covid_19_on_Microfinance_Institutions_of_Nepal-Prakash_Kumar_Shrestha_PhD.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brainerd, Elizabeth & Siegler, Mark V, 2003. "The Economic Effects of the 1918 Influenza Epidemic," CEPR Discussion Papers 3791, C.E.P.R. Discussion Papers.
    2. Kashif Malik & Muhammad Meki & Jonathan Morduch & Timothy Ogden & Simon Quinn & Farah Said, 2020. "COVID-19 and the future of microfinance: evidence and insights from Pakistan," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(Supplemen), pages 138-168.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phurichai Rungcharoenkitkul, 2021. "Macroeconomic effects of COVID‐19: A mid‐term review," Pacific Economic Review, Wiley Blackwell, vol. 26(4), pages 439-458, October.
    2. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).
    3. Karlsson, Martin & Nilsson, Therese & Pichler, Stefan, 2012. "What Doesn't Kill You Makes You Stronger? The Impact of the 1918 Spanish Flu Epidemic on Economic Performance in Sweden," Working Paper Series 911, Research Institute of Industrial Economics.
    4. Fabian Duarte & Srikanth Kadiyala & Samuel H. Masters & David Powell, 2017. "The Effect of the 2009 Influenza Pandemic on Absence from Work," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1682-1695, December.
    5. Fraser Summerfield & Livio Di Matteo, 2021. "Influenza Pandemics and Macroeconomic Fluctuations in Recent Economic History," Working Papers 210002, Canadian Centre for Health Economics.
    6. Karlsson, Martin & Nilsson, Therese & Pichler, Stefan, 2014. "The impact of the 1918 Spanish flu epidemic on economic performance in Sweden," Journal of Health Economics, Elsevier, vol. 36(C), pages 1-19.
    7. Arthi, Vellore & Parman, John, 2021. "Disease, downturns, and wellbeing: Economic history and the long-run impacts of COVID-19," Explorations in Economic History, Elsevier, vol. 79(C).
    8. Brada, Josef C. & Gajewski, Paweł & Kutan, Ali M., 2021. "Economic resiliency and recovery, lessons from the financial crisis for the COVID-19 pandemic: A regional perspective from Central and Eastern Europe," International Review of Financial Analysis, Elsevier, vol. 74(C).
    9. Edward L. Glaeser, 2021. "Urban Resilience," NBER Working Papers 29261, National Bureau of Economic Research, Inc.
    10. Anubhab Gupta & Heng Zhu & Miki Khanh Doan & Aleksandr Michuda & Binoy Majumder, 2021. "Economic Impacts of the COVID−19 Lockdown in a Remittance‐Dependent Region," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 466-485, March.
    11. Nudrat Faria Shreya, 2021. "Are Two Sources of Credit better than One?: Credit Access and Debt among Microfinance Clients in Bangladesh," Studies in Economics 2103, School of Economics, University of Kent.
    12. Katharina Mühlhoff, 2022. "Darwin beats malthus: evolutionary anthropology, human capital and the demographic transition," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 16(3), pages 575-614, September.
    13. Correia, Sergio & Luck, Stephan & Verner, Emil, 2022. "Pandemics Depress the Economy, Public Health Interventions Do Not: Evidence from the 1918 Flu," The Journal of Economic History, Cambridge University Press, vol. 82(4), pages 917-957, December.
    14. Peter Csanyi, 2020. "Migrant Crisis – Rebellion Of Visegrad Group Countries," Almanach (Actual Issues in World Economics and Politics), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(3), pages 5-13.
    15. Yothin Jinjarak & Ilan Noy & Quy Ta, 2022. "Pandemics and Economic Growth: Evidence from the 1968 H3N2 Influenza," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 73-93, March.
    16. Gian Maria Campedelli & Alberto Aziani & Serena Favarin, 2020. "Exploring the Effects of COVID-19 Containment Policies on Crime: An Empirical Analysis of the Short-term Aftermath in Los Angeles," Papers 2003.11021, arXiv.org, revised Oct 2020.
    17. Fenske, James & Gupta, Bishnupriya & Yuan, Song, 2020. "Demographic shocks and women’s labor market participation: evidence from the 1918 influenza pandemic in India," CAGE Online Working Paper Series 494, Competitive Advantage in the Global Economy (CAGE).
    18. Kristina Czura & Florian Englmaier & Hoa Ho & Lisa Spantig, 2023. "Employee Performance and Mental Well-Being: The Mitigating Effects of Transformational Leadership during Crisis," Rationality and Competition Discussion Paper Series 412, CRC TRR 190 Rationality and Competition.
    19. Christian Møller Dahl & Casper Worm Hansen & Peter Sandholt Jensen, 2022. "The 1918 epidemic and a V‐shaped recession: evidence from historical tax records," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 139-163, January.
    20. Basco, Sergi & Domènech, Jordi & Rosés, Joan R., 2021. "The redistributive effects of pandemics: Evidence on the Spanish flu," World Development, Elsevier, vol. 141(C).

    More about this item

    Keywords

    Covid-19; Microfinance Institutions;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nrb:wpaper:nrbwp202051. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Division NRB (email available below). General contact details of provider: https://edirc.repec.org/data/nrbgvnp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.