Institutional preparedness and sustainability of micro finance institutions during post disaster scenario

Abstract

Purpose

This paper seeks to show how microfinance has contributed to poverty reduction and strengthening the risk management capacity of the poor.

Design/methodology/approach

Considers disaster preparedness of micro finance institutions (MFIs) especially in natural disasters, economic crisis and civil conflicts.

Findings

Finds that it is essential for MFIs to prepare a strategy for maintaining liquidity in a disaster situation, especially keeping disaster loan funds (DLFs) in reserve to help affected households.

Originality/value

Sees disaster management as a dynamic process that could ideally be developed during normal times and tested in actual disasters but it requires careful planning and commitment on the part of all stakeholders

Citation

Anand Kumar, T.S. and Newport, J.K. (2007), "Institutional preparedness and sustainability of micro finance institutions during post disaster scenario", Disaster Prevention and Management, Vol. 16 No. 1, pp. 21-32. https://doi.org/10.1108/09653560710729785