| 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. |